Countries on the front lines of the climate crisis are forced to spend so much of their national budgets on sovereign debt repayments that these finance flows are driving fossil fuel expansion, preventing climate action and sustainable development, and leaving communities highly exposed to increasing climate impacts. The Vicious Cycle between the debt and climate crises is getting worse year on year, causing rising emissions, accelerating climate disasters, stifling climate action and leading to ever deepening debt crises.
Today, available data indicates that 93.5% of the top one-third of climate-vulnerable countries are in debt crisis or at significant risk of debt distress. Public debt repayment levels in the most climate vulnerable countries are at an all-time high and globally at least 54 countries are in debt crisis, with many more at significant risk.