BEYOND CLIMATE FINANCE - Climate ambition in the Global South requires

Two types of lending has been identified: • Lending by the government-owned China Development Bank and the Export- Import Bank of China • Bailouts by the central bank, the People’s Bank of China, as the 'lender of the last resort' similar to the role played by the IMF China charges higher interest rates on loans, and borrower countries have to sign non-disclosure agreements preventing them from re. [...] For instance, the share of MDBs and bilateral aid from the Paris Club have declined, whereas the shares of private bondholders and China as a bilateral lender have seen the largest increase.39 2.4 THE ROLE OF MULTILATERAL DEVELOPMENT BANKS Although the COP 27 cover decision referenced the need to reform MDBs, calls for their reform to operate more effectively in the era of climate change pre-date. [...] The issue of reform of multilateral banks as well as the question of the enormous debt burden of the most vulnerable countries is on the table at international forums. [...] In 2022, the UN Secretary 44 Centre for Science and Environment Beyond Climate Finance.indd 44 26/06/23 4:39 PM WHAT ARE THE PROPOSALS ON THE TABLE? General called on “on all developed economies to tax the windfall profits of fossil fuel companies”, with some European countries and the United Kingdom going ahead and implementing such taxes in the wake of the Russian war. [...] The current trend of offering subsidies to green manufacturers under policies like the Inflation Reduction Act in the US and the Green Deal Industrial Plan in the EU is seeing vast amounts of public money being offered to the private sector in rich countries.