Climate financing adds to poor countries debt pile: Oxfam

2 min read

News: Oxfam has released a report titled Climate finance shadow report 2020 – assessing progress towards the $100 billion commitment.

Facts:

  • Background: Developed countries had committed in 2009 to mobilise $100 billion every year by 2020 to help developing countries cut their carbon dioxide emissions and adapt to the effects of climate change.
  • What is the progress?
    • Developed countries have pledged around $59 billion in 2017-18.However, around $47 billion of the pledged amount was forwarded as loans.
    • Hence, money being pledged by developed countries to their developing counterparts as climate assistance was making them sink into ever-increasing debt.
  • What are the other takeaways from the report?
    • Only around a third of climate finance projects are estimated to take account of gender equality.
    • Only a fifth (20.5%) of climate financing went to Least Developed Countries(LDCs) and just 3% to Small Island Developing States (SIDS).
  • Recommendations:
    • Climate financing could be funded through a range of sources including redirecting some fossil-fuel subsidies which cost governments over $320 billion in 2019 alone.
    • Developed countries should scale-up grant-based financing for adaptation and reduce the share of climate financing provided in the form of loans.
    • Mobilise more Private, locally led and Gender responsive finance.
    • Increase Grants and Finance for Least Developed Countries (LDCs) and Small Island Developing States(SIDS).