unfccc.int: Climate Change is Driving Debt for Developing Countries

 

 

UN Climate Change News, 3 July 2018 - Increased risk from vulnerability to climate change is increasing the cost of capital and is projected to cause an additional USD 168 billion of debt payments over the next ten years among the most climate change vulnerable countries, according to new research commissioned by the UN.

 

 

A new report compiled by the Centre for Climate Finance & Investment at Imperial College Business School and the SOAS University of London Department of Economics is the first of its kind to look at the relationship between climate change, sovereign credit profiles, and the cost of capital in developing countries.

 

 

The report finds that rapid climate change action to limit emissions to 2°C global average temperature warming above pre-Industrial Revolution levels and aim for 1.5 °C as agreed upon in the Paris Climate Agreement not only minimizes the impact of climate change, but reduces the future cost of climate change action and adaptation.

 

 

“Our work demonstrates that climate change is not only imposing economic and social costs on developing countries, but it is also amplifying existing risks that are already priced in fixed income markets. These impacts will grow”, said Charles Donovan Director of the Centre for Climate Finance and Investment at Imperial College Business School.

 

 

“The good news is that investments in climate adaptation can not only reduce social, ecological and economic harm, but can buffer against fiscal impairments. But to be effective, these investments need to be made now,” he added.

 

 

The research focused on the so-called “V20” group of countries, members of the Climate Vulnerability Forum which is a consortium of the 20 nations most vulnerable to climate change.

 

 

The report estimates that these countries have already paid an additional USD 40-62 billion in additional interest payments due to climate risk from floods, droughts, and severe weather events.

 

 

The USD 62 billion increase in payments so far is the equivalent of coastal protection dykes for 9,538km of coastline. This could cover the entire coastlines of Bangladesh, Barbados, Cambodia, Fiji, Haiti, Sri Lanka, and Vietnam.

 

 

The study finds that borrowing for climate finance becomes more expensive over time if action is not taken quickly because the increased risk of investments from climate vulnerability causes debt repayments to increase over time.

 

Read more...

Go back

CBFP News

WWF: Rainforest deforestation more than doubled under cover of coronavirus -DW

Tropical rainforests shrank by 6,500 square kilometers in March — an area seven times the size of Berlin. Criminal groups are taking advantage of the pandemic and the unemployed are getting desperate, the WWF said.

Read more …

Nouabalé-Ndoki National Park Monthly update April 2020

"At a time when many countries are beginning their gradual deconfinement and when there is a glimmer of hope on the horizon of returning to normal life, I wanted to share with you some good news that also fills us with hope for the future of the Nouabalé-Ndoki National Park."

Read more …

Resources and follow-up from the virtual FAO-EcoAgriculture Partners Roundtable

Last April 30th FAO and EcoAgriculture Partners organized a virtual Roundtable on Territorial Perspectives for Development, in which over 170 people participated.

Read more …

ATIBT -CBFP: Private Sector mobilized around the CBFP Facilitator of the Federal Republic of Germany

ATIBT co-facilitated the mobilization of the private sector of the timber sector to participate in the first meeting of the private sector college of Congo Basin Forest Partnership with the new facilitator Dr Christian Ruck and his team German Facilitation.

Read more …

Development and institutionalization of a PAFC certification system for the Congo basin: opening of the second public consultation on Sustainable Forest Management Certification Standard, 23 May 2020 - 22 June 2020

This second public consultation will be open for a period of 30 days from tomorrow Saturday the 23rd of May 2020 and will be closed on Monday the 22nd of June 2020. The public consultation is open to all stakeholders of forest management in the Congo Basin interested in participating to the PAFC Congo Basin certification standards development process.

Read more …

Forest defenders on the COVID-19 frontline stand ready to assist the global EU response – Fern

These efforts go hand in hand with ensuring continued responsible management of natural resources and preventing unsustainably and illegally sourced forest commodities. In the Democratic Republic of Congo, forest-monitoring organisations Observatoire de la Gouvernance Forestière (OGF) and Réseau des observateurs indépendants des ressources naturelles (RENOI) are set to carry out COVID awareness-raising in at-risk forest areas, and will also assess COVID’s impact on forest management and governance commitments under the Central African Forest Initiative (CAFI). Across the Congo Basin, fears that a proper lack of oversight may put forests and forest peoples in danger are looming despite emerging initiatives.

Read more …

22 May 2020 International Day for Biological Diversity

The theme of the 2020 International Day for Biological Diversity is “Our Solutions are in Nature”. It shows that "Biodiversity remains the answer to a number of sustainable development challenges that we all face. From nature-based solutions to climate, to food and water security, and sustainable livelihoods, biodiversity remains the basis for a sustainable future."

Read more …

CBFP News Archive

2024

There are no news items for this period.