Tess Woolfenden

In response to Prime Minister Andy Burnham’s £2 bus fare cap funded by switching international climate finance from grants to loans, Heidi Chow, Executive Director of Debt Justice, said: “This is a welcome step for the millions of people forced into debt to pay for essentials by the cost of living crisis across the UK.

Debt is a major obstacle to climate action. Across Global South countries, debt payments to external creditors have reached their highest levels in 30 years, with around 130 countries in or near debt distress. As global geopolitical and economic shocks continue – including the US-Israel war on Iran – the situation is likely to worsen. In this blog, Tess Woolfenden and Mae Buenaventura explore how the international community can achieve climate justice.

Across the Global South, unsustainable debt is deepening poverty, fuelling inequality and driving climate vulnerability – but 2025 represents a unique and urgent opportunity to address this unjust burden. Leaders from debtor nations are making bold demands for debt justice, campaigners are bringing together a huge global movement, and the crucial Financing for Development Conference is on the horizon.