Emily Wilkinson’s Post

Many Small Islands are past colonies.. and so suffer from chronic resource scarcity - largely due to past exploitation of their resources by colonizing powers ... with many of the latter being responsible for the ongoing increasing GHG emissions that create catastrophic climatic impacts --> which harm Small Islands such as hurricanes, storm surges etc --> that occur EVERY YEAR across regions like the Caribbean --- so its a continuous cycle of constant and increasing debt as these resource scarce nations - which apart from past exploitation, have been forced to into even further debt by having to seek consessional loans to clean up the almost yearly bouts of descruction (so no $ left for adapation or to adequately address basic needs such as healthcare) -- due to emissions being caused by many of their past colonizers ... yet adaptation financing remains scarce ... and global financing mechanisms remain fixed (for the most part) within archaic constructs developed when climate change was not a global concern ...how does this make any sense from a climate justice perspective? Caroline Mair-Toby Denyse S. D. Michelle Mycoo #climatejustice #decolonization https://lnkd.in/d5bN-5uK

👁️ DEBT SERVICE OF LDC´S TWICE AS HIGH AS CLIMATE FINANCE RECEIVED The International Institute for Environment and Development  (IIED) has analyzed the debt service and the climate finance received by 58 Least Developed Countries (LDCs) and Small Island Developing States (SIDS). Around 1.2 billion people live in these countries. Climate change is an existential problem for many heavily indebted LDCs and SIDS because they are so highly exposed to climate impacts yet have very little fiscal room to adapt. Some key findings from IIED’s analysis: - The 58 countries spent US$59 billion repaying debts in 2022 compared with $28 billion they received in climate finance. Of the $28 billion provided in climate finance in 2022, just over half ($14.8 billion) was provided as loans rather than grants. - For 26 countries, debt repayments in 2022 cost more than they received in total bilateral foreign aid (of which climate finance is a subset). IIED proposes, among other things: - Lower-income countries should be given easier access to money through grants and concessional finance. - There needs to be more comprehensive debt relief to support developing nations free up budget space for climate change adaptation. - Investors and government lenders should make greater use of debt-for-climate-and-nature swaps. #ClimateFinance #ClimateJustice #DebtForClimateAndNatureSwaps.

⚡Just in: A NEW report commissioned by the governments of Colombia, Kenya, France, and Germany lays bare the devastating effect of debt burdens for many vulnerable low-income countries. The Expert Review on Debt, Nature, and Climate reveals the extent to which unsustainable debt burdens, loss of in nature, and escalating climate change are compounding one another in a hugely destructive '‘triple crises''. Ali Mohamed, Special Envoy for Climate Change-Executive office of the President of Kenya & Chair of African Group of Climate Negotiators says: “This interim report highlights the inescapable reality that we cannot address the climate crisis without tackling the growing burden of debt. Vulnerable nations are caught in a cycle of borrowing to recover from climate disasters, further straining their economies. It’s time for the global community to come together, not just to restructure debt, but to recognize that investments in nature and climate resilience are fundamental to long-term economic stability. Our goal is to turn this vicious cycle into a virtuous one, where sustainable investments lead to prosperity and resilience, rather than debt distress.” ➡️ For more information, see the full report: https://lnkd.in/dnCiCP_w Center for Global Development, BNP Paribas, University of Massachusetts Amherst, World Resources Institute, Utrecht University, Boston University Global Development Policy Center, Inter-American Development Bank, CEB - Council of Europe Development Bank, Institute of Finance and Sustainability (IFS), Bruegel - Improving economic policy, Council on Foreign Relations, Resilient Earth Capital, Universidad de Los Andes, Universidad Internacional del Ecuador, The Liquidity and Sustainability Facility (LSF), LBBW 

A recent report by the Debt Relief for Green and Inclusive Recovery Project (DRGR) highlights that emerging countries face a daunting challenge. They're projected to spend a staggering $400 billion on servicing external debt this year alone. However, 47 of these nations risk default within five years if they divert funds towards climate adaptation and sustainable development, crucial for meeting 2030 Agenda and Paris Agreement goals. The report urges a global financial overhaul, debt forgiveness, and increased affordable financing to avert a looming crisis. It also calls for IMF to reconsider its debt sustainability assessments to factor in climate spending needs. Read more at: https://lnkd.in/d8Vim8Ez #thomaslloyd #renewableenergy #infrastructure #esg #netzero #asia #climatechange #sustainability #emergingmarkets #energytransition #electricity #biomass  

Huge debt costs mean climate spending could make emerging nations insolvent Emerging countries will pay a record $400 billion to service external debt this year, and 47 of them cannot spend the money they need for climate adaptation and #sustainabledevelopment without risking default in the next five years, according to a report released on the eve of IMF/World Bank spring meetings. The report, from the Debt Relief for Green and Inclusive Recovery Project (DRGR) found that the 47 developing countries would hit external debt insolvency thresholds, as defined by the International Monetary Fund (IMF), in the next five years if they invested the necessary amounts to hit 2030 Agenda and Paris Agreement goals. A further 19 developing countries lack the liquidity to meet the spending targets without help, though they would not approach default thresholds. The report called for an overhaul of the global financial architecture, alongside debt forgiveness for the most at-risk countries and an increase in affordable finance and credit enhancements. "We need to mobilize more capital and bend down the cost of capital for countries if we're going to have any prayer to meet this," Gallagher told Reuters. #climateemergency #climatechange #esg #debt #insolvency #sdg #climatespending #sustainability #finance https://lnkd.in/gKHXmGWp

As per International Monetary Fund's ("IMF") Report from the Debt Relief for Green and Inclusive Recovery ("DRGR") Project, 47 developing countries across the world are likely to hit external debt insolvency thresholds as defined by IMF in the next 5 years if they invest the necessary amounts to meet the need for climate adaptation and Sustainable Development Goals. To overcome this challenging situation, Report also recommends overhaul of the global financial architecture and increasing affordable financing options for such countries. Report Link : https://lnkd.in/dCu-VefJ #Insolvency #IMF #DRGR #SDGs #ClimateChange

🌿 Did you know that debt-for-nature swaps could unlock an incredible $100 billion for climate action? A recent report by the IIED sheds light on this game-changing opportunity. 🌎 Success stories: Countries like Belize, Ecuador, Barbados, Gabon, and Cabo Verde have already made strides with debt swaps, showcasing the transformative impact on both their economies and ecosystems. 💡 While these countries collectively owe $431 billion in debt, they received less than $14 billion in climate finance according to OECD figures from 2021. 💼 Urging action: As the IMF and World Bank gear up for their Spring meetings, it's crucial to consider more debt swaps to help vulnerable nations like Pakistan, Sri Lanka, Ghana, and The Gambia. 📈 Takeaway: By creating fiscal space for governments and supporting global climate efforts, debt-for-nature swaps offer a win-win solution for both finance and the environment. 💚 #ClimateAction #DebtForNature #Sustainability #DecadeofAction The Transformation Alliance H&Z Management Consulting https://lnkd.in/epwZg4Vs

Global South countries spend more on debt repayments than on education and healthcare. Meanwhile the wealthiest nations and private creditors profit from a system that inflames inequality and leaves the most climate vulnerable countries unable to address or prevent disasters. In Foreign Affairs, Ford's VP of International Programs Martin Abregu, and the peerless Crystal Simeoni and Dr. Ndongo Samba Sylla, pen an essential read on why global stability depends on debt justice, and how to break the doom loop of this predatory debt system.

The global South is grappling with a staggering $3 trillion debt burden, locking nations into cycles of poverty and climate vulnerability. Money spent on debt servicing is money taken from schools, hospitals, and critical climate action. This isn’t a broken system—it’s one designed to profit wealthy creditors at the expense of the Global South. In Foreign Affairs Magazine, Ford Foundation’s Martín Abregú joins Crystal Simeoni and Dr. Ndongo Samba Sylla to propose a bold vision: equitable reforms, debt cancellation, monetary sovereignty, and partnerships that put Global South voices at the forefront. At stake are global stability, sustainable development, and climate resilience. The time to act is now. https://lnkd.in/emXfpHY8

Climate debt Risk Index 2024 concludes, ....“LDCs are among those most vulnerable to the impacts of climate change and yet bear the highest financial burden through unsustainable loan practices.” Debt related to climate in these countries has risen significantly, constraining their potential for effective application of sustainable climate strategies and, generally speaking, their development." According to the report Nepal is also at risk of debt crisis. at COP29 Azerbaijan Nepal has positioned itself strongly advocating for #grantbased, #publicfinance, #accessible #climatefinance. During a side event organized by Zurich Climate Resilience Alliance partners, and ODI at COP29 Azerbaijan, Farah Naureen, Interim Regional Director-Asia, Mercy Corps highlighting the case of Pakistan shared that after climate induced flood of Pakistan in 2022, the government has received one third of the pledged amount (11 Billion USD) and 90% of it is on loan. With intensifying and recurring disaster such financial model will compromise country's ability to support #resilientrecovery and its development endeavors. The case has clearly highlighted need of #grantbased and #publicfinance for #lossanddamage and #climatefinance. While the parties at COP are finalizing NCQG for climate finance, #MercyCorps together with all developing countries strongly call for grant based, direct, predictable, and accessible climate finance immediately. An interesting, must read article by Krishna Poudel mam on the issue Debbie Hillier Barbara Rosen Jacobson Huong Hoang Sriju Sharma Suraj Sigdel Nabin joshi Kriti Bhuju Sanjit Shrestha Maheshwar Dhakal Salomé Lehtman Dharam Raj Uprety https://lnkd.in/gUSYKHiK