47 Nations Face Financial Disaster Over Climate Change
A new report from the Debt Relief for Green and Inclusive Recovery (DRGR) Project titled “Report: Defaulting on Development and Climate – Debt Sustainability and the Race for the 2030 Agenda and Paris Agreement” shows that 47 emerging market and developing economies with an aggregate population of more than 1.11 billion could become insolvent in the next five years as they try to increase their investments to reach meet climate and development goals. The reports looked at 66 emerging market and developing economies. The authors of the report wrote, “Not meeting these goals will have tragic impacts on the lives of present and future generations; yet, emerging market and developing economies (EMDEs) are facing conditions that inhibit their ability to mobilize investment, including historic levels of external debt, higher interest rates and low growth prospects to 2030.”
US News –Polluted States
World Disaster –No Money For Solutions
Climatecrisis247 believes these are not the only countries that will strain financially to meet the 2030 goals. Many countries cannot hit 100% of their targets. The news is bad because it shows that global financial capacity, even with successful contributions from the world’s wealthiest nations, is such that reaching the worldwide 2030 target is nearly impossible.
Loans From The Private Sector
The report says that these nations are viewed as highly risky for loans that might aid them in reaching climate goals. This means that interest rates on such loans would be extremely high, likely locking them out of private debt markets.
Will the broader international community help financially? The report suggests: “Debt relief alone is not a substitute for a permanent sovereign debt workout mechanism and the deeper reforms needed to reform the global financial architecture. It should be provided as part of a package of new liquidity and affordable development finance, alongside reforms to the global financial architecture.” This probably means an appeal to The World Bank or IMF.
Finally, the authors point out that creating any financial option must be available almost immediately.
