Climate financing adds to poor countries debt pile: Oxfam

Climate finance shadow report 2020 released by Oxfam– assessing progress towards the $100 billion commitment by developed countries. 

• Climate finance shadow report 2020 released by Oxfam– assessing progress towards the $100 billion commitment by developed countries. 
• In 2009, developed countries had commited 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.
• As of now, developed countries have pledged around $59 billion in 2017-18 out of which around $47 billion was forwarded as loans.
• The money being pledged by developed countries to their developing countries as climate assistance was making them sink into ever-increasing debt.
• According to the report, only around a third of climate finance projects are estimated to take account of gender equality. And only a fifth (20.5%) of climate financing went to Least Developed Countries (LDCs) and just 3% to Small Island Developing States (SIDS).
• The report recommends: Climate financing can be funded through a range of sources including redirecting some fossil-fuel subsidies which cost governments over $320 billion in 2019 alone.
• It suggests, that developed countries should scale-up grant-based financing for adaptation and reduce the share of climate financing provided in the form of loans.
• To mobilise more private, locally led and gender responsive finance.
• To increase Grants and Finance for Least Developed Countries (LDCs) and Small Island Developing States(SIDS).