Debt Burden Hampers Climate Action in Vulnerable Countries

India, Sept. 17 -- Climate-vulnerable countries are spending nearly 25 times more on debt repayments than on climate action, according to a new ActionAid report examining the financial pressures facing nations most exposed to climate change.

Debt Payments Outpace Climate Spending

ActionAid's report, Debt Fuels the Climate Crisis: How the Finance Flows, analysed public revenues, debt repayments, national budgets and climate plans across 65 climate-vulnerable countries.

It found that debt servicing absorbs 65% of their combined government revenue, while 93.5% of the countries assessed are either in debt distress or face a significant risk of it. The Global South is expected to make about US$8.8 trillion in debt repayments in 2026, compared...