The climate crisis is intensifying across lower-income countries. From severe droughts and flooding in Zambia to intensifying hurricanes across the Caribbean, the communities least responsible are bearing the brunt of an emergency created by rich countries and companies.
Many of the same countries are in debt crisis, facing the worst debt levels in over 25 years. This means countries are stuck paying billions in debt payments to rich lenders rather than being able to put resources into people’s needs, like healthcare, education and dealing with climate disasters.
The scale of the global debt crisis means that right now, lower-income countries are spending five times more on debt repayments than on addressing the climate crisis.
With vast sums of money being drained from lower-income countries every month on debt interest payments alone, countries are not able to prepare for or prevent the worst impacts of the climate crisis. Devastating harms from the climate emergency continue to escalate with lower-income countries left picking up the tab.
Meanwhile, financial giants are dragging their feet in negotiations for debt cancellation, seeking as much profit as possible from potential deals. This is leaving countries on the frontlines of the debt and climate crises in limbo and without the resources they urgently require.
These challenges play out in countries like Zambia, Kenya, and across countries in the Caribbean, where the impacts of the climate and debt crises come together.
Zambia
Zambia has spent years trapped in a cycle of debt after irresponsible lending from Western corporations, as well as Chinese banks.
During this time, the country has suffered from devastating floods and is now in a state of national emergency due to severe droughts which have devastated the country’s agriculture, threatening food and energy supplies to people across the country.
The debt crisis has meant that money that could have been spent on public services and the climate emergency has instead drained from the country in interest payments on loans to private lenders. Precious Kalombwana – a debt activist for Debt for Climate Zambia who is demanding debt cancellation – told us how her father’s house was swept away by flooding in 2023 and has still not been rebuilt because the country lacks resources due to debt.
“Last year we had floods, and my father’s house was destroyed. There was no government protection available because they do not have the funds because Zambia is indebted. So my father now doesn’t have a house.” – Precious Kalombwana, Debt For Climate Zambia
Some of Zambia’s private lenders finally agreed a debt relief deal in March this year after 4 years of negotiations. However, under the deal there are huge increases in debt payments if Zambia’s economy does slightly better than expected. But no decrease if it does worse – for instance if the drought continues, or there are even more impacts from the climate emergency.
Kenya
At least 50 people have now died due to violent police repression of peaceful protesters in Kenya. What began as anger over proposed tax hikes and cuts to public services driven by the need to pay off unjust debts, has evolved into broader criticism of the government. Many are now calling for the President to step down.
Kenya is currently in debt crisis, and spending over a quarter of its budget on debt payments to external creditors. This debt includes billions of dollars owed to Western lenders, who have lent to the country at extraordinary interest rates of over 10% – while countries like the UK and Germany can borrow from the same lenders at just 3-4%.
The climate crisis is making the situation even worse for people in Kenya, putting livelihoods under intense pressure. In May this year, devastating flooding claimed hundreds of lives, destroyed 2,000 schools and displaced thousands more.
The dire economic situation means that Kenya cannot afford to take necessary steps to adapt to a changing climate.
Hurricane Beryl in the Caribbean
When Hurricane Beryl hit the Caribbean in July, it caused utter devastation for Jamaica, Grenada and St Vincent and the Grenadines. At least ten people were killed, buildings were shattered, thousands were left homeless and many more left without food, water or electricity.
Now, faced with the escalating costs of rebuilding, Caribbean leaders are asking why countries that are the least responsible for the climate crisis are being forced further into debt to pay for it.
They’re calling on the UK government to push for debt cancellation for all indebted small island states on the front-line of the climate emergency to free up resources that can instead be spent on addressing the climate emergency and other needs. As countries recover and rebuild from the devastation brought on by the hurricane, now is a pivotal moment for us to stand with them and amplify their demands.
At the same time, as experiences in the Caribbean show us, rich countries must urgently start to pay their climate debt – the debt they owe to lower-income countries for their role in creating the climate crisis. This is why we are also supporting groups around the world calling on rich governments to provide grant-based climate finance at key international meetings this year.
Take action in the UK
As the impacts of the climate crisis continue to heat up, now is a vital moment for us to stand with people and communities calling for debt cancellation and debt justice across the world – from Africa to the Caribbean.
While debt relief negotiations have been painfully slow and left countries trapped in debt, we have a real opportunity to speed things up and win debt cancellation by enacting an new law in the UK.
A new debt justice law would force lenders to the table and make sure countries in debt crisis can negotiate debt cancellation quickly – freeing up money to respond to and prepare for the climate crisis.
Add your voice to the campaign and stand in solidarity with people on the frontline of the debt crisis by signing our open letter to the new UK government.