What’s the news?

• In recent years, climate justice activists have been advocating for economically developed countries to increase their investments in climate adaptation and mitigation, including supporting other nations in dealing with the impacts of climate change.

Central idea

• Countries in Sub-Saharan Africa, Latin America, and South Asia, despite contributing the least to global warming, are disproportionately affected by climate disasters and burdened with debt distress. In contrast, North American and European countries, which have historically been the major contributors to greenhouse gas emissions, also hold significant roles as creditors in the ongoing debt crisis.

Carbon Emissions per Capita in Various Regions

• Global Average Emissions: The global average emissions per capita have consistently remained above 4.7 tonnes per capita since 2010. This value is twice the baseline target needed to limit global warming to 1.5 °C.
• Africa and India: Countries in Africa and India have consistently emitted carbon dioxide per capita below the global average. Despite being major contributors to the global population, their carbon emissions per capita have been comparatively lower.
• China: China crossed the global average carbon emissions per capita in 2004 and has steadily increased since then. By 2021, China’s per capita emissions would reach 8 tonnes, placing it on par with Europe and Oceania.
• UAE and the U.S.: Despite observing an overall decline in emissions, the UAE and the U.S. still had the highest carbon emissions per capita as of 2021. The UAE’s per capita emissions were recorded at 21.8 tonnes, while the U.S. stood at 14.9 tonnes

Investment in Climate-related Activities by World Bank Regions

• Sub-Saharan Africa: This region had the highest investment fraction in climate finance, allocating 1.3% of its GDP towards climate-related activities in both 2019 and 2020. This indicates a significant commitment to addressing climate challenges.
• East Asia and the Pacific: Following closely behind, this region allocated 1% of its GDP to climate-related initiatives, showcasing a considerable effort in climate finance.
• South Asia: The region dedicated 0.9% of its GDP to climate-related activities in both years, reflecting a notable commitment to addressing climate change impacts.
• U.S. and Canada: In contrast, the United States and Canada contributed the least among the World Bank regions, allocating only 0.3% of their GDP to climate-related projects in 2019 and 2020.

International Multilateral Climate Funds Disbursement

• Disbursement Disparity: Since 2003, a total of $3.3 billion has been approved to be disbursed to South Asia through these multilateral climate funds. However, only $1.3 billion was actually disbursed. This indicates a significant disparity between approved funds and actual disbursements.
• Global South Funding: A large fraction of the funds for climate mitigation and adaptation in the Global South come from international multilateral climate funds. These funds are primarily sourced from economically developed countries.
• Suboptimal Disbursement: On average, most regions received only 40% of the approved funding intended for their climate projects. This points to challenges with efficient fund allocation and disbursement.

Climate Vulnerability Index

• The Climate Vulnerability Index is calculated annually by the Notre Dame Global Adaptation Initiative and combines a country’s exposure, sensitivity, and capacity to adapt to climate change. The Risk of Debt Distress is based on the International Monetary Fund’s Debt Sustainability Framework reports.

Climate Vulnerability Index by country and the Risk of Debt Distress by region

• Climate Vulnerability Index: Most notably, countries in Sub-Saharan Africa emerge as the most vulnerable to climate change, facing higher risks due to their exposure, sensitivity, and limited capacity to adapt to climate impacts.
• Risk of Debt Distress: Sub-Saharan Africa stands out as the region with several countries at high risk of or facing debt distress, further exacerbating their vulnerability to climate change.
• Correlation: Most of the countries experiencing high climate vulnerability are also at risk of debt distress, highlighting the interconnectedness of climate change impacts and financial challenges.
• High-Income Country Exclusion: Several high-income countries were excluded from the analysis due to limited data. Therefore, the focus of the chart is primarily on countries in the Global South.

Expressed concern from the above observations

• Disproportionate Vulnerability: The observations highlight the inequity in climate impacts, where regions that have historically contributed less to greenhouse gas emissions are disproportionately bearing the brunt of climate disasters.
• Financial Vulnerability: Climate-related impacts can exacerbate existing economic vulnerabilities, leading to a higher risk of debt distress, which, in turn, hampers their capacity to address climate change and sustainable development needs effectively.
• Climate Finance Disparity: The disparity between approved funds and actual disbursements through international multilateral climate funds is worrying. This raises questions about the efficiency of fund allocation and disbursement.
• Limited High-Income Country Data: The exclusion of several high-income countries from the analysis due to limited data poses concerns about the comprehensive understanding of global climate vulnerabilities.
• Interconnected Challenges: The interconnection between climate vulnerability, debt distress, and development challenges implies that addressing one issue without considering the others may not yield sustainable solutions.

Way forward

• Increased Climate Finance:
• Economically developed countries must urgently increase their financial contributions to support climate adaptation and mitigation efforts in vulnerable regions.
• Meeting the target of $100 billion annually for climate finance is crucial to aid vulnerable countries in building resilience and reducing greenhouse gas emissions.
• Debt Relief for Vulnerable Countries:
• High-risk and debt-distressed countries should be offered debt relief measures specifically tied to climate action.
• Debt-for-climate swaps and innovative financial instruments can help these nations allocate more resources to climate resilience and sustainable development.
• Technology Transfer and Capacity Building:
• Accelerate the transfer of clean and sustainable technologies to vulnerable countries, providing them with the tools and knowledge to adapt to climate change and reduce emissions effectively.
• Capacity building efforts should be prioritized to enhance local communities’ abilities to implement climate-friendly solutions.
• Adaptation and Resilience Investment:
• Urgently invest in climate adaptation projects that enhance the resilience of vulnerable communities and ecosystems.
• Prioritize infrastructure improvements, nature-based solutions, and disaster risk reduction measures to protect lives and livelihoods from climate-related impacts.
• Ambitious Emission Reduction Targets:
• Pursue ambitious emission reduction targets at the national and global levels.
• All countries, especially economically developed ones, should take the lead in transitioning to clean energy sources and decarbonizing their economies to limit global warming

Conclusion

• The current disparity in climate financing between economically developed countries and those in Sub-Saharan Africa, Latin America, and South Asia raises concerns about climate justice and the urgent need to bridge the gap. Only through collective and equitable action can we build a sustainable and resilient future for all.

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