But why can’t they borrow?

Doesn’t make sense:

One of the biggest issues at Cop26 is climate finance, the funding that is supposed to be provided by the rich world to developing countries to help us cut greenhouse gas emissions and adapt to the impact of the climate crisis.

What is worse, a lot of the money is coming in the form of loans, not grants

But why not loans? The activities being financed should themselves be profitable. If not, there’s no point doing them anyway. And if they are then they can repay.

Here’s another idea: developed countries could agree debt-for-adaptation swaps. So instead of developed countries insisting that we repay our current loans in hard currency, which is difficult for us, those repayments could be converted into local currency and spent locally on adaptation.

That’s just a way of defaulting upon past loans……

8 thoughts on “But why can’t they borrow?”

  1. Instead of paying my bank payments for the money I borrowed to replace my roof, I’ll spend that money on replacement windows. After all, that’s improved the house, so that’s paying off my debt surely.

  2. Looking out of another stump hole, we are told that the UK borrowing loads of money creates heaps of extra tax revenue and pays for itself just like that.

    Weird that it doesn’t seem to apply to these countries though………

  3. If the investment is ringfenced for green projects, and green projects only show a return from subsidies, it would be foolish indeed to borrow money for them without a worthwhile promise of a subsidy.
    Hence third world countries will borrow for, e.g. coal fired power stations on which they get a return, but not for windfarms which they, like us, will have to subsidise- unless of course we do the subsidising for them

  4. What debts are these? I thought that St. Bono campaigned successfully to have their debts forgiven? That “a child dies every 3s” campaign.

  5. The link suggests that it comes from the Grauniad – so of course it’s nonsense.
    China has encouraged poor countries to burn coal so the west must pay them to stop … why doesn’t China write-off the cost of the coal-fired power stations? Answers on a UN postage stamp, please.

  6. Climate crisis? Evidence please.

    Funding = taxpayer plunder.

    Loans coming from bankrupt Countries.

    Excellent.

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