Faith-based organizations challenge "Wall Street climate consensus" at UN forum

“The climate emergency demands investment spending and a long-term perspective,” emphasized Dr Manuel “Butch” Montes from the Society for International Development and Independent Commission for the Reform of International Corporate Taxation. “What is at stake at the 4th International Conference on Financing for Development is about who makes the rules governing the global tax system and the international financial architecture.”

Climate finance experts stressed at the event that the current approach to funding climate action exacerbates existing injustices. Mae Buenaventura from the Asian People’s Movement on Debt and Development pointed out that “the lack of climate finance is not a budget issue but a justice issue,” noting that “70 percent of climate finance is in the form of loans, deepening indebtedness.”

“Climate vulnerable poor countries are shelling out more and more in debt servicing every year,” Buenaventura added. “It’s important to note that the climate and debt crises are rooted in one system. This calls for system change.”

Mariana Paoli from Christian Aid cautioned against relying too heavily on private financing mechanisms. “Poor and developing countries need close to USD 5 trillion to respond to the climate emergency. While this is a massive figure, there is no lack of money,” she explained. “Currently there is a risky focus on private finance and multilateral development banks to deliver this finance—what we call the ‘Wall Street climate consensus.’ This is risky because private finance is profit-oriented, not people and climate-oriented. It is critical to reclaim the role of public finance.”