The UK said its export credit agency, which loans money to overseas buyers of British goods and services, will become the first agency to include “climate resilient debt clauses” in its lending. These stop debt payments for two years if a nation is hit by a climate disaster, freeing up funds to deal with the emergency.
The move was strongly backed by Avinash Persaud, a special envoy to the Barbados prime minister, Mia Mottley, the most prominent backer ofto deliver climate finance. “Adopting these clauses in debt instruments is the single most impactful way of making the international financial system fitter for the new world of shocks and for international development. I cannot commend this initiative by the UK government enough.
There are three types of climate finance, for cutting emissions, adapting to inevitable climate impacts and for loss and damage. The latter is the most controversial and has been blocked for years by rich nations who fear being liable for huge sums of compensation.
So Australia, a first world country, needs to pay reparations to a developing country like China. I smell a Labor election promise on the horizon 🤔