Joining the Dots... - Key issues for transforming the international financial architecture & shaping the fourth international conference

In this context, sending the majority of climate finance (two-thirds at present) in the form of loans can actually make the climate crisis worse! In FfD4 States must confront this contradiction and recognise that they need to act immediately to end the debt crisis, not least because this is a crucial step towards addressing the climate crisis. [...] Debt and Austerity High levels of debt make countries dependent on the policy advice and conditions of the International Monetary Fund - which is both the lender of last resort and the enforcer of debt repayments. [...] In the UN COP climate negotiations, there is an explicit and established recognition of a debt owed by countries historically responsible for pollution to the countries experiencing the worst effects of the climate crisis. [...] A recognition of the scale of the climate debt of the Global North to the Global South through agreeing a new climate finance goal in the trillions of dollars every year. [...] A commitment for the wealthy countries of the Global North to implement progressive tax frameworks and support globally coordinated taxes and reforms, to generate trillions of dollars for climate action – not least to raise climate finance for necessary and urgent climate action in the Global South.