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International Debt Is Strangling Developing Nations Vulnerable to Climate Change, a New Report Shows
Many small island nations which contributed little to climate change now must borrow money to rebuild after climate-induced storms. The debt service they’re carrying hinders their ability to invest in new adaptive infrastructure before the next storms hit.
By Katie Surma
Small island developing countries are increasingly becoming locked into a cycle of environmental disasters and compounding debt burdens, making them less capable of investing in climate resilient infrastructure and providing basic public services, according to a new report scheduled for partial release on Wednesday.
Related Knowledge Center: Climate economics
State of Play
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”