According to a report by ActionAid International, a global organization based in South Africa that works to end poverty and injustice, 65 countries most at risk from climate change are spending nearly 65 percent of their national income on repaying debt. This means they spend about 225 times more on debt than on actions to address climate change. The report highlights a growing financial imbalance, where these countries pay around $8.8 trillion in debt repayments by 2026, while receiving only about $39 billion in climate-related funding in 2024. This disparity raises concerns about the ability of these nations to invest in measures that could help them adapt to or mitigate the effects of climate change.
The report also states that 93.5 percent of the countries most vulnerable to climate change are either already over-indebted or are at a high risk of becoming so. This financial burden, the report suggests, could hinder efforts to protect natural resources and ecosystems in countries that are heavily reliant on forests. The pressure to generate revenue for debt repayment, it says, may push some governments to prioritize economic activities that heavily depend on natural resources, such as the extraction of fossil fuels or the production of agricultural goods for export.
This situation, according to ActionAid International, creates a harmful cycle in which the need to repay debt leads to increased reliance on resource extraction, which in turn worsens environmental degradation and makes these countries even more vulnerable to the impacts of climate change. The report calls for urgent action to address the debt burden on these nations, arguing that without relief, the climate crisis will continue to be exacerbated by the very economic choices that are driven by financial necessity.
The findings underscore the complex relationship between global finance and climate policy, emphasizing that debt relief and climate funding must be considered together to ensure that the most vulnerable countries are not left behind in the global effort to address climate change. The report urges international bodies and wealthier nations to take a more active role in supporting these countries through debt restructuring and increased climate finance.
Climate-Vulnerable Countries Allocate Major Resources to Debt Repayment, Limiting Climate Action
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