The Debt-Fossil Fuel Trap : Report
Debt-Fossil Fuel Trap report HIGHLIGHTS Poor countries burdened with heavy debts are compelled to rely on fossil fuels to generate revenue for repaying loans from richer nations.
- The Debt-Fossil Fuel Trap report has been released by the anti-debt campaigner’s Debt Justice and partners in affected countries.
Findings of the Report “The Debt-Fossil Fuel Trap”:
- Fossil fuel extraction is seen as a means to generate revenue and alleviate debt for countries in the global south
- Creditors are entitled to 30% of oil revenue until 2050, incentivizing continued oil exploitation.
- Argentina supports fracking in Vaca Muerta (Northern Patagonia) to ease the debt crisis.
- Revenues from fossil fuel projects often fall short of expectations, leading to further debt.
- External debt payments for global south countries have risen by 150% between 2011 and 2023, reaching a 25-year high
54 countries in a debt crisis, cutting public spending during the pandemic to repay loans
- Extreme weather events force countries to borrow more money for adaptation and mitigation efforts.
- Dominica’s debt as a percentage of GDP rose from 68% to 78% after Hurricane Maria hit the island in 2017.