During the ECOSOC FFD Forum, an intervention was delivered by APMDD and the Civil Society Financing for Development Mechanism through Mae Buenaventura during the interactive discussion under Panel 6 on Debt and Debt Sustainability last April 24.
Excellencies,
Good morning. My name is Mae Buenaventura, working with the Asian Peoples’ Movement on Debt and Development and speaking today on behalf of the Civil Society Financing for Development Mechanism.
We note with concern that little/no attention has been given to increasing lending for climate action when there should be an increase in grants, in line with the principle of common but differentiated responsibilities. International financial institutions such as the World Bank have lent billions of dollars to Global South governments for fossil-fuel energy projects. Many of these loans remain part of outstanding public debts, and which add to the debt service burdens of climate-threatened countries.
There is already clear consensus among governments and many public financial institutions that fossil fuel energy is the main driver of climate change. The Conference of Parties summits as well as the G7 and G20 summits have called for transitioning away from fossil fuels and committed to phasing out subsidies. Owning up to their co-responsibility in promoting fossil fuels, and consistent with their avowed commitments to combat climate change, governments and public financial institutions should cancel all outstanding public debts that arose from fossil fuel projects. Funds freed from debt service may then be transformed into grants for renewable energy systems. It is only just to assert that climate finance should not be debt-creating; the Global South must not be forced to take on more debt to pay for a crisis it did not create. Thank you.
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