UK owes poor countries £17 billion annual climate debt

The UK comes under attack in a recent study which states that the country is obligated to pay the developing countries of more than £17 billion ‘climate debt’ per year for its contribution to global warming. The report, ‘The Climate Debt Crisis’, heavily condemns the UK government’s current scheme of channelling its pro-climate change aid through the World Bank (WB) and of promoting the WB as the core hub of international climate finance. Authored by anti-poverty groups, Jubilee Debt Campaign and World Development Movement, the research urges the climate finance to be distributed through the UN.

In addition, the report criticizes the WB for issuing climate finance as loans, not as assistance, and for permitting the funds to be used for building coal power plants instead of low carbon energy projects. Meanwhile, the campaigners disapprove with the WB forcing third world countries to adopt economic policies that have ultimately increased poverty and greenhouse gas emissions, such as deforestation, fossil fuel extraction and intensive food production for export.

Pro-poor advocates argue that rich countries have contributed a lot to climate change and that they should pay compensation to poor countries which are always hit the hardest. They informed that the fund is essential for assisting developing nations to deal with the effects of climate change.

Nick Dearden, Director of Jubilee Debt Campaign, warned that the climate debt issue will be a deal-breaker for the developing countries in next month’s Copenhagen climate conference. He added that if the Copenhagen talks fail, it is likely that because rich countries refuse to pay their climate debt.