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The Vicious Cycle: Connections Between the Debt Crisis and Climate Crisis

The interconnection between climate and debt crises in countries most vulnerable to climate change creates a vicious cycle, as each crisis reinforces the other. According to a recent report by ActionAid, over two-thirds of climate finance is provided through loans, exacerbating the debt crisis and driving nations towards actions that worsen the climate crisis. Many current proposals for climate finance expansion focus on increasing loans rather than exploring fairer and more sustainable alternatives. ActionAid's analysis of data from climate-vulnerable countries reveals alarming results. Climate finance in the form of loans unintentionally intensifies the climate crisis by trapping countries in a debt-driven negative spiral. This forces governments to prioritize debt repayment, leading to increased fossil fuel extraction, mining, chemical-based agriculture, deforestation, and environmental destruction with severe human rights implications. To break this cycle, it is crucial to consider tax-based alternatives and advocate for debt cancellation as a central demand of climate justice.

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作者: Action Aid
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组 织: Action Aid
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年份: 2023
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类别: 报告
内容语言: English
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