A U.S. policy think tank is advocating a transformative approach to climate finance for vulnerable countries: cancel national debts and redirect the repayment funds to climate adaptation and resilience projects. It would not only alleviate debt distress, but also abate the “monumental” gap in adaptation funding, the Brookings researchers say. So far, the lion’s share of climate finance has been granted with the expectation that it will generate revenue, so 90% of it goes to activities that mitigate emissions, like renewable power projects. “Suffice it to say, as long as profit-motive drives the majority of climate finance flows, adaptation finance will lag behind,” the researchers warn. The geopolitical goal would be encourage developing countries to align themselves with the U.S. rather than relying on China, the writers suggest.

Source: National Post May 28, 2023 10:10 UTC