Oxfam: Rich countries short changing poor countries

Oxfam has raised concerns about rich countries overstating the true value of climate finance provided to poorer nations by up to $88 billion. According to Nafkote Dabi, Climate Change Policy Lead at Oxfam International, the real value of climate finance to the Global South is significantly less than what has been reported. The organization's recent study reveals that rich countries have failed to fulfill their commitment of providing $100 billion annually between 2020 to 2025 to developing countries. Dabi highlighted the issues with the current climate finance structure, emphasizing that a large portion of the funds provided are in the form of loans rather than grants. This means that rich nations are profiting from the financial assistance intended to address the climate crisis in these vulnerable regions. Furthermore, some of the development projects financed by these loans lack any clear connection to climate action, raising questions about the legitimacy of the provided funds. The study estimates that the actual amount of climate finance reaching developing countries is significantly lower than the reported figures. This discrepancy is particularly concerning as millions of people in regions like the Horn of Africa are currently facing severe hunger. Oxfam calls on rich countries to fulfill their commitment to providing climate finance in the form of grants to support communities on the front line of the climate crisis. Additionally, Dabi highlighted that many countries, including France, Italy, Spain, the US, and the UK, predominantly offer climate finance in the form of loans rather than grants. These non-concessional loans often come with market rates or higher, further complicating the financial burden on recipient countries. As the international community prepares for COP29 later this year, Oxfam stresses the importance of avoiding these financial pitfalls and ensuring that climate finance is provided transparently and effectively to those in need. The organization also raises concerns about the role of developing countries in accepting these loans, urging them to advocate for grant-based funding that aligns with the principles of justice and climate responsibility. Oxfam's research sheds light on the critical need for a more equitable and sustainable approach to climate finance, one that prioritizes the needs of vulnerable communities and supports their efforts to combat the escalating climate crisis.