Climate change: Civil society orgs demand cancellation of debts from developed countries, IFIs

A group of country's civil society organisations has called on the developed countries, particularly those in the Global North, and the international financial institutions (IFIs) to cancel all the debts of Bangladesh that are related to climate financing.

The group, led by EquityBD, also demanded compensation and grant-based financing instead of loan on Thursday (12 October), reads a press statement.

The Global North encompasses the rich and powerful regions such as North America, Europe, and Australia. On the other hand, the best-known IFIs include the World Bank, the IMF, and the International Finance Corporation.

Speaking at a human chain on Thursday, the civil society organisations criticised the World Bank, the Asian Development Bank and the Japan International Cooperation Agency for their role in making the Least Developed Countries (LDCs) and Climate Vulnerable Countries (CVCs) indebted in the name of climate finance.

The Bangladesh Krishak Federation [BKF], Center for Participatory Research and Development [CPRD], Equity and Justice Working Group Bangladesh [EquityBD], Global Law Thinkers Society [GLTS], Nirapad Development Foundation [NDF], Upakul Surokhha Andolon, Youth Net for Climate Justice and Water Keepers and many other civil society organisations participated in the programme.

It was moderated by Mostafa Kamal Akand of COAST Foundation.

Aminul Hoque of EquityBD said the Structural Adjustment Program prescribed by IFIs in the 1980s has repatriated trillions of dollars of resources from LDCs to developed countries.

"Now they come with a new global issue terming it 'climate finance', pushing the LDCs and the CVCs in another debt trap again."

He also opined that the Paris Agreement and its financing processes are unfair. 

He said the financing process must be unconditional under the agreement and support poor countries with compensation for fighting climate change.

Sharif Jamil of Water Keepers said Bangladesh and like other poor countries are already in the rich countries' trap because of their debt driven policy support in addressing climate change.

For instance, he stated that the JICA driven Integrated Energy & Power Master Plan 2030 is faulty and will create external dependency for Bangladesh.

He warned the government to move forward cautiously with this faulty policy action and demand effective support.

Nikhil Cahndra Bhadra of Upakul Surokhha Andolon said poor countries are already having to merge their resources for debt payment. In addition, they are forced to reduce public expenditures for agriculture and other essential and pro-poor services, resulting in aggravated poverty.

The vicious cycle of debt dependence is weakening the state's capacity to fight climate change, that's why climate debts must be cancelled, he said.

Badrul Alam of Krishak Federation criticised the IFIs as the institutions are yet to change their anti-poor role.

"Now they again started with so-called policy support for those [poor countries], while in fact, they are creating more debt burden for CVCs."

He said the existing global financial process is fully exploitative in draining resources of poor countries.

Rezaul Karim Chowdhury of EquityBD said the current external debt is $1,100 per capita which is nearly impossible for the country to repay.

He called on the prime minister to discard any loan addressing climate actions and urge to keep this position in moving for a sustainable climate finance strategy for Bangladesh.