ACT NOW: Send a pound to the UN Climate Fund
The UK government is threatening to increase third world debt by providing loans to developing countries to cope with climate change.
The money is intended to enable developing countries to cope with the impacts of climate change. But it is in the form of loans not grants. This is clearly unjust, since rich countries are overwhelmingly responsible for causing climate change. After years of campaigning to get governments to cancel unfair debt, our government is now planning to undo our hard work.
What's more, the government is also planning to make these loans through the unaccountable World Bank, against the wishes of developing countries, who want funds to go through the UN Adaptation Fund. So far, the UK has not granted a single penny to this fund.
Please join us and the World Development Movement by sending a pound to Andrew Mitchell, the Secretary of State for International Development, to let him know that we want the UK to support the UN climate fund instead of creating new debt through the World Bank. We will make sure Andrew Mitchell receives every individual pound, along with your messages.
What's wrong with the World Bank?
The World Bank has long been an instrument of implanting policies that benefit rich countries and increase climate change. Earlier this year, the World Bank loaned £2 billion to South Africa for a coal-fired power station, exacerbating climate change and adding billions to South Africa's already high level of debt. Irresponsible World Bank lending has led to poor countries getting trapped in debt, which has then been used as a means to force them to privatise infrastructure, liberalise trade policies and cut public spending on education and health care. The World Bank's track record of imposing policy conditions and programmes on developing countries, its lack of accountability to the people from communities it affects, and its undemocratic governance structures seriously discredit the institution. These policies pushed millions more people into poverty, whilst creating business opportunities for western corporations.
Why are we supporting the UN Adaptation Fund?
The governance of the UN Adaptation Fund is considerably more democratic and accountable than the World Bank, with far greater representation from developing countries. Unlike the World Bank, this fund won't create new debt as it only delivers grants. Also, countries are able to apply to the UN Adaptation Fund for grants as they need to, whereas the World Bank hand picks countries it wants to support. This allows the World Bank to make funding decisions based on the economic and political interests of rich countries. The UN Adaptation Fund was collaboratively developed through the UN climate talks, so by supporting the World Bank against the wishes of developing countries instead of the UN Adaptation Fund, the UK risks undermining the international negotiations.
"Can you imagine if I destroy your house with my vehicle, and then say I am going to lend you two thousand pounds to rebuild your house? That's what the UK government is doing trying to pay compensation with these climate loans. And as for the World Bank, I would rather the UK bought flowers for every house in the country than give more money to the World Bank."
-Ricardo Navarro, CESTA El Salvador
Want to know more? Check out WDM's Climate Debt Tricky Questions briefing.
Why are you asking me to send a pound?
The UK has not granted any money to the UN Adaptation Fund. This action aims to encourage our government to support this fund instead of the undemocratic World Bank, as they are currently doing.
People being prepared to give their own money sends a really strong message of public support for the UN Adaptation Fund, which is preferred by developing countries, and gives grants rather than loans.
In the 1990s, debt campaigners took a similar action, sending a pound to Gordon Brown, who was then Chancellor of the Exchequer, asking him to use it to cancel unfair debts. That action was really successful and we are hoping that this one will be too.
By supporting loans through the World Bank rather than grants through the UN the current government is threatening to create new unfair debt for developing countries. The UK and other developed countries are primarily responsible for climate change. It is we who owe countries in the global south a climate debt. That's why it is particularly unjust that those countries should be subject to new debts as a result the fact that they need funds to deal with adapting to climate change.