Climate Finance

People in the global South are most affected by the current climate crisis, even though the crisis is being induced by pollution and CO2-emissions in the developed countries. Therefore, developed countries should assist developing countries in adjusting to climate changes, and should finance these measures with aid, not new loans.

Today, there is little doubt about the fact that human-induced climate changes are one of our era’s biggest challenges. There is a need for the implementation of substantial measures in order to reduce future emissions and to adjust to the climate changes that may arise. UN has committed itself to the UNFCCC’s principles that the polluter should pay, which implies that the polluter – often developed, industrialized countries- should get the largest bill. Still, there are examples of financing schemes that will put an unrightfully large fraction of the burden on poor countries, for example through loans.

In 2009, Norway committed itself to support the World Bank’s Strategic Climate Fund with 50 million dollars, and have also obtained a seat in the fund’s board. This fund was set up by the World Bank so that countries that could not afford climate initiatives would get support for this, for example through loans. The idea to give poor countries who want to implement measures to adjust to climate changes loans, is in clear juxtaposition to the ordinary mindset in UN climate negotiations about how adaption projects first and foremost should be financed by rich countries as a replacement for the climate destructions that the rich world has brought upon the poorer countries.

If we are to solve the climate challenges of our time, it is essential that we avoid methods that lead to new problems, both environmental and economic. Debt Justice Norwat believes that UNFCCC’s principle stating that the polluter should pay has to be the basis for the financing of measures to reduce climate change. Debt Justice Norway demands that the financing of climate adaption should not add to the burden of debt on developing countries. The UN should be the main actor in the financing of climate adaption, and the role of the international financial institutions role should be limited.