"The World Bank has approved a loan of US$750 million (RM3.54 billion) to Colombia, to help the country become more resilient in the face of climate change by buoying up renewable energy efforts and reducing carbon emissions, the bank said yesterday."
That follows a December 2022 loan of US$1 billion.
Articles like this make the lender look good but almost never disclose the terms. Is it aid, or is it rent seeking?
Huge debt costs mean climate spending could make emerging nations insolvent
"Emerging countries will pay a record $400 billion to service external #debt this year, and 47 of them cannot spend the money they need for #ClimateAdaptation and #SustainableDevelopment without risking default in the next five years, according to a report released on the eve of IMF/World Bank spring meetings."
"Nearly 60% of low-income countries are now in debt and they collectively spend six times more repaying their debt than what the World Bank lends in a year.
With the current global financial system in place, nearly half of the world’s population lives in a country that spends more on external debt service than on health or education, underscoring the urgency of policy reform."
A coalition of actors, politicians, artists and economists have urged world leaders to triple their investment support for mitigating the climate crisis while solving the global debt.
“To end extreme poverty and unlock sustainable development, G20 leaders should back financial architecture reform, deliver more concessional finance via the World Bank’s International Development Association, and work with civil society to ensure the money gets to where it’s needed most.”
"Wealthy nations have loaned at least $18 billion at market-rate interest. That is not the norm for #loans for climate-related and other aid projects, which usually carry low or no #interest.
At least another $11 billion in loans – nearly all from Japan – required recipient nations to hire or purchase materials from companies in the lending countries. Conditional aid can carry additional costs because recipients can’t consider cheaper contractors."