Oxfam: Rich countries are not delivering on $100bn climate finance promise

  • Date: 20/10/20
  • Climate Home News

Nearly 80% of climate finance is in the form of loans that must be repaid, adding to the debt burden of the poorest countries, anti-poverty campaigners found.

Wealthy nations are giving less money to poorer ones for climate projects than their official statistics make out, according to analysis by Oxfam.

In a report published on Tuesday, the anti-poverty charity found that nearly 80% of climate finance to developing countries took the form of loans, rather than grants. Poor nations were expected to pay richer countries back, often for investment in projects with weak climate credentials.

“The excessive use of loans and the provision of non-concessional finance in the name of climate assistance is an overlooked scandal,” the report said.

In 2009, rich countries committed to mobilise $100 billion per year by 2020 to help vulnerable nations cut their emissions and cope with climate impacts.

Oxfam analysed the latest climate finance figures from 2017-2018, when developed countries reported delivering $59.5 billion in climate finance, about 33% more than in 2015-2016.

In total, rich countries gave just $12.5bn in the form of grants, $22bn in loans with better-than-market rates and around $24bn in loans with standard market rates. Interest charges and payments to creditors were not deducted from donor countries’ climate finance figures.

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