Climate finance

In September both the UK and US increased their annual pledges of climate finance to the global south. While this is good news, rich country governments are still falling short of the $100 billion a year target for climate finance established in 2010 – a target which critics argue is still insufficient compensation for the global north’s role in causing climate breakdown.

Furthermore, three quarters of this finance comes as loans, increasing the debt burden of southern governments, while Oxfam estimated in 2020 that the true value of support received by governments was only $20 billion a year. So we are calling on the UK and rich governments to agree a new deal on climate finance at COP26 that sees developed nations paying their fair share, and ensuring that finance comes in the form of grants not loans.

The last thing countries experiencing the severe economic impacts of extreme weather need is more debt from climate loans. Moreover, heavily indebted countries may be forced to turn towards fossil fuel exports to make their repayments, so it is vital that we break this vicious cycle of debt and climate chaos.

In September, activists in Edinburgh demonstrated outside HSBC, UBS, and Abrdn calling on them to cancel Zambia’s debt (see picture), while activists also delivered a letter to banks in Manchester. In October, we will be collaborating with allies in the UK and globally on a week of action for debt cancellation.

And after the UK announced an end to its use of aid money to fund oil and coal projects overseas earlier this year, we are working with allies to end public financing of gas projects. We joined 200+ organisations in a statement calling on Alok Sharma to work with other rich governments to produce a collective statement at COP26 to end all public financing for overseas fossil fuel infrastructure. With the International Energy Agency having said that no new gas projects should be commissioned after this year to achieve net zero by 2050, it is essential that the UK makes these commitments to adhere to its own climate targets.

Our latest petition calls on the UK to pay its fair share of climate finance. globaljustice.org.uk/fair-share

As well as signing and sharing this the petition, you could write to your MP ahead of COP26, outlining how the UK can support climate justice at the talks, and asking them to write to the prime minister in support of our campaigns. For guidance, contact Daniel: daniel.willis@globaljustice.org.uk

NEW: Financing justice? UK climate finance and how to increase ambition at COP26. Eight-page briefing (September 2021).