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Debt compels poorer countries to spend 5 times less on climate crisis

Debt compels poorer countries to spend 5 times less on climate crisis

As the world warned of a rising of temperature to a fatal level for the absence of climate actions the countries have pledged, poorer countries are reported to have been struggling on financial liabilities as they spend five times more on debt than reducing carbon emissions and coping with the effects of the climate crisis.

A report by anti-poverty charity Jubilee Debt Campaign shows that 34 of the world's poorest nations are spending $29.4 billion on debt payments every year. They only spend $5.4 billion on the fight against climate change.

The report has also predicted that these nations will be spending seven times more on debt payment by 2025, reported The Guardian.

Executive director of Jubilee Debt Campaign Heidi Chow said that lower-income nations will be raising the issue at the Cop25 meeting in Glasgow this week. She noted that poorer nations are paying billions in debt repayments to richer nations, banks, and financial institutions.

The report noted that just because a country said that it has plans to spend money on climate change adaptation, it doesn't mean it has funds.

She pointed out that it is a time when resources are desperately needed to fight the climate crisis. And the debt of poorer nations is impacting their ability to tackle climate change. Chow told The Guardian that wealthy polluting nations need to provide climate finance through grants and cancel debts.

Lower-income countries are paying over 10% interest on loans provided by international banks. At the same time, richer nations only pay an interest of 1.5-2.5%. In the UN climate talks in Copenhagen in 2009, rich nations had committed to providing funding of $100 billion a year to developing nations to help them deal with climate change.

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