Lidy Nacpil is coordinator of the Asian Peoples’ Movement on Debt and Development (APMDD).
Many countries in the Global South are burdened with huge public debts. These rising debts are a drain on public resources that are urgently needed for sustainable development programmes, and further pressure Southern governments to prioritise debt service over climate actions.
Global South countries allocate more funds for debt service – 65% in lower- income countries and 14% in lower-middle-income countries – than their combined budgetary spending for education, health and social protection.
Included among the public debts of Global South countries are those from projects tainted with fraud and whose negative impacts on people, economies and the planet far outweigh the benefits, if any. Furthermore, many debts arose from projects that did not involve democratic consultations nor the free, prior and informed consent of affected communities including indigenous peoples. Prime examples of these debts are those arising from or related to fossil fuel projects. These debts should be seen and treated as illegitimate.
World Bank climate funding greens African hotels while fishermen sink
For several decades, international financial institutions and public finance institutions have lent hundreds of billions of dollars to Southern governments to support fossil-fuel energy projects. Many of the loans extended by the World Bank, Asian Development Bank (ADB), and other public finance institutions such as the Japan Bank for International Cooperation (JBIC), remain part of the current outstanding public debts.
There is already a clear consensus among governments and many public financial institutions that fossil fuel energy – from its extraction, production and consumption – is the main driver of climate change.
This is evidenced by outcomes from the Conference of Parties (COPs) summits of the UN Framework Convention on Climate Change, calling for the phase-out or transition away from fossil fuels, as well as outcomes from G7 and G20 summits committing to the phase-out of fossil fuel subsidies. Individual governments including China and Korea, have announced decisions to stop their financing of overseas coal projects. Further evidence is in the decisions made by public financial institutions to stop or phase out financing of coal and fossil fuels.
These decisions, commitments and policy shifts should be taken as acknowledgement of their co-responsibility in the promotion of fossil fuels and the harms fossil fuel projects have caused to people, communities, the environment and climate systems.
Owning up to their co-responsibility for fossil fuel projects and their impacts, and consistent with their avowed commitments to combat climate change, governments and public financial institutions, including international financial institutions, should cancel all outstanding public debts that arose from fossil fuel projects. These outstanding debts may be transformed into grants for renewable energy systems.
UN climate chief calls for “quantum leap in climate finance”
The same can be said for private banks, financial and investment institutions and corporations that have lent money to governments for fossil fuel projects. Many have also recognised fossil fuels as the main drivers of climate change and have shifted their policies towards reducing or phasing down their lending and investments in coal and fossil fuels.
From April 17 to 19, the IMF and the World Bank (IMF-WB) will hold their Spring Meetings in Washington D.C. These meetings take place amidst an ever-worsening debt crisis, most harshly felt by 3.3 billion people living under governments that spend more on interest payments than education or health.
Bankruptcy risk from climate spending
A new report released on the eve of the meetings found that developing countries will pay a record $400 billion to service external debt this year. It said climate spending could bankrupt developing countries due to huge debt costs and called for debt forgiveness for those most at risk. The report from the Debt Relief for Green and Inclusive Recovery Project (DRGR) warned 47 developing nations would reach external debt insolvency thresholds in the next five years if they invested the necessary amounts to meet the 2030 Agenda and Paris Agreement goals.
Spring Meetings can jump-start financial reform for food and climate
It is deplorable that the IMF-WB continues to push loans as the solution to multiple crises facing developing countries, including loans for climate action. At the height of the COVID-19 pandemic, when financial resources were most urgently needed, they supported and promoted the debt relief schemes of the G20 and Paris Club for the mere postponement of debt payments. These have all but proven flawed and futile. The suspended payments fall due in 2025 – by which time debt accumulation will have sped up even more. Private and commercial lenders, who now hold over 60% of sovereign debt, remain free to refuse participation in debt reduction.
Total public debt, domestic and external, reached $92 trillion in 2022, increasing five-fold since 2000. Southern governments account for almost one-third of the total debt and are accumulating debt much faster than their richer counterparts. The number of countries with public debt levels exceeding 60% of GDP continues to rise, from 22 in 2011 to 59 in 2022. The long-term public external debts alone of low- and middle-income countries, excluding China, amount to a staggering $3.3 trillion.
The consequences of World Bank projects, coupled with IMF neoliberal, policies have been devastating for vulnerable communities in the Global South. Large-scale infrastructure projects financed by the World Bank have led to displacement of communities, loss of livelihoods and destruction of ecosystems, and in the process, deepened inequality and impoverishment. Its fossil fuel subsidies and project loans impacted communities already struggling to survive economic hardships and environmental degradation. It also continues to subsidise the fossil fuel industry through direct and indirect financing, estimated at $885 million in 2022 and at least $194 million in 2023.
The World Bank and the IMF, now in their eighth decade of committing to fight poverty, have yet to account for loans that are clearly illegitimate and must be canceled outright, nor for harsh loan conditionalities that have deepened inequality and impoverishment.
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Climate Change
After a week of plenty of activity and drama for Greenpeace at sea, I felt like writing to you on a much quieter theme…
Do you have a favourite book, poem or story about the ocean?
When I was very small, it was the TimeLife book of The Fishes, by F. D. Ommanney, which I remember endlessly poring over, my child’s mind gripped, in total fascination. The cover illustration showed a shoal of barracuda, mid-water and heading upwards, lit up as an iridescent blue by a column of sunlight. Oddly, it is only the cover and the illustrations of the deep sea creatures which I now remember—but I loved that book, as the weakened spine, blunted pages and dog-eared corners attested.
The Fishes has been on my mind recently, because I’ve been working with some dear friends on our own illustrated oceans book, to be published by Upswell Publishing. The book is called Scott Reef: Like Nowhere Else on Earth, and I want to share with you a bit of the story behind its creation.
Scott Reef is absolutely magnificent: Australia’s largest freestanding oceanic reef, brimming with life, including rare and threatened species such as a genetically distinct population of green sea turtles, pygmy blue whales and the wonderfully elegant dusky sea snake. But Scott Reef isn’t near our capital cities; it is way off the north-west coast of WA. And it is threatened with devastation by Woodside, which wants to drill up to 57 toxic wells at the Reef for its vast, dirty Browse gas project.
One of the main challenges in the fight to save Scott Reef from being turned into an industrialised gas zone by Woodside is bringing this incredible location to life for people who haven’t actually experienced it first hand. Because despite its ecological significance and dazzling beauty, ‘Scott Reef’ is also—at least not yet—exactly a household name.
To help get over this barrier, Greenpeace has enabled a number of photographers to travel to Scott Reef by boat (including the Rainbow Warrior) to document its astonishing diversity of colour and life. We then brought these images together in a remarkable photobook, produced by our talented in-house team, which we’ve been putting into the hands of as many leaders as possible—including the MPs whose decisions can determine the Reef’s future.
Back in June this year, I was sharing a copy of our in-house book at a business gathering in Perth when someone pulled me aside. Had we thought about publishing the book commercially? Apart from anything else, he wanted to buy a copy himself! He had a point. We were proud of what we’d created, but a commercially published version could reach a much wider audience and have even greater campaign impact. I immediately turned to my dear friend, Terri-ann White, who runs Upswell Publishing in WA, for advice.
Terri-ann has a huge heart and terrific vision. So many wonderful things in WA owe their existence to her doings, and, true to form, she was immediately encouraging and enthusiastic. “But,” she said, “it would add a whole new dimension if we had some words to accompany the incredible pictures.”
Fair enough, I thought. I could ask a few authors.
“And when would you like it published?” she asked.
“Ideally November,” I answered sheepishly.
Now, in publishing terms, nobody goes from idea to finished work, beautifully produced by a commercial publisher, in just four months. It. Just. Doesn’t. Happen. A book of this scale would ordinarily take nine months, I was told. But Terri-ann was undeterred. “If you can get a rapid turnaround on the writing, I will give it a shot.”
Over the following few days, I sent out 24 emails to prospective writers. To my joy and surprise 23 of them responded almost immediately with an enthusiastic yes!
Terri-ann was somewhat alarmed and perplexed when I told her the good news… we’d discussed a few authors, not more than twenty! “Impossible,” she texted. “Editing is important and you are talking about thousands of words!” But I also know Terri-ann. She does the impossible. And so, here we are… Terri-ann is going to hit that improbable deadline. Scott Reef: Like Nowhere Else on Earth will be on shelves in November.
The contributors are a wonderfully diverse bunch, united by their enthusiasm for Scott Reef — and their extraordinary speed!
It’s a brilliant mix. The book brings together national icons like Peter Garrett, Tim Winton, Mick Dodson, Janet Holmes à Court and Fiona Stanley; the intellectual heft of professors Frank Bongiorno, Jessica Meeuwig, Rick Steiner and Samantha Hepburn; the poetic vision of Prema Arasu, Berndt Sellheim and Saadiah Freeman; the field expertise and passionate first hand witnessing of Imogen Zethoven, Tooni Mahto, Ben Fitzpatrick, Geoff Bice, Olaf Meynecke, Paul Gamblin, Sarah Gittoes and Hayley Baillie; and the determination of emerging activist voices Jackson Reid and Emma Sangalli.
Their elegant words wrap themselves around the sheer wonder of the underwater world, brought to life by the work of the photographers — of whom one, Wendy Mitchell, has also contributed a wonderful essay.
Terri-ann showed me the full physical proofs this week and they are breathtaking. This book contains some of my absolute favourite images of wildlife beneath the waves -– and believe me, after almost 20 years at Greenpeace, I’ve been privileged enough to see some remarkable shots! The essays bring a whole new depth and richness to the story of Scott Reef.
If I am being honest, and maybe a bit sentimental, I hope that a four or five-year-old child somewhere in Australia will spend part of their summer holidays turning the pages of this book, wide-eyed with curiosity and awe at the beauty and strangeness of the creatures that call our oceans home.
Our shared commitment is to make sure that, as those children grow up, the wonders of Scott Reef will exist not just in the pages of the book, but out there in the wild waters off north-western Australia—alive, thriving, and every bit as extraordinary as they are today; a living wonder beneath the waves.
Pre-orders of Scott Reef: Like Nowhere Else on Earth are available here.
Q & A
Sometimes you get asked a question so often that you decide to produce a report to answer it!
We know there is strong public opposition to voter opposition to gas drilling at Scott Reef and fracking in the Kimberley in Western Australia. But I am frequently asked whether, even if people don’t want it, more gas drilling is a necessary evil to sustain WA’s prosperity?
The short answer is an unequivocal ‘No’. The longer answer is our new report, From Gas to Green: Building Western Australia’s Future State, which makes the comprehensive case that Asia’s gas market is declining — while WA has an enormous untapped opportunity to become a global leader in green industries and exports, helping drive the region’s shift away from fossil fuels. The faster that WA embarks on a decisive shift away from gas—and that includes no fracking in the Kimberley, or drilling at Scott Reef — so much the better for the state’s people, ecology and economy.
For the first time, new-energy vehicles (NEVs) made up 67% of new car sales in China in September, according to the latest data from the China Passenger Car Association (CPCA).
The figures show that NEVs, which include battery electric cars and plug-in hybrids, captured a record share of sales, even though fewer were sold than last year.
This is because sales of combustion-engine cars are falling steeply, a trend that the CPCA has attributed to rising petrol prices following the start of the Hormuz crisis.
Indeed, sales of fuel-only cars were down 31% year-on-year in the first nine months of 2026, with plug-in hybrid sales down 26% – whereas battery EV sales were only down 4%.
One analyst tells Carbon Brief that China’s rapidly growing EV fleet has offset demand for 143m barrels of oil since the start of the Hormuz crisis.
Another says that the crisis is “reinforcing China’s electrification of road transport”.
Meanwhile, amid slowing domestic sales, Chinese carmakers’ exports of NEVs more than doubled [in 2026 to date / in September] from a year earlier.
NEV record
A record two out of every three cars sold in September in China were NEVs, according to CPCA data, as shown in the figure below.
(NEVs predominantly include battery electric vehicles – BEVs – and plug-in hybrids – PHEVs. BEVs only run on electricity, whereas PHEVs also have a combustion engine.)
This marks a rapid rise for NEVs from just 6% of new car sales in 2020 up to 58% in 2026 to date – and a record 67% in the month of September.
This year, NEVs’ share of sales has also bounced back from a low of 39% in January, after the full purchase tax exemption that had been in place for more than a decade came to an end in December 2025.
The gain in NEV share in 2026 has come amid a slowdown across the wider domestic passenger-car market, which has hit sales of combustion-engine vehicles particularly hard.
This September, passenger-car retail sales across all categories declined, with overall sales volumes falling 28% year-on-year.
The contraction was led by combustion-engine vehicles, which saw sales fall 43% year-on-year in September and 31% in 2026 to date.
However, sales of PHEVs also fell by 36% year-on-year in September and by 26% in 2026 to date. By comparison, BEVs performed better, although sales still declined 8.5% from a year earlier in September and 4% in 2026 to date.
As a result, NEV sales overall fell by 17% in September and 13% in 2026 to date.
While the market changes in 2026 to date were particularly dramatic, they reflect a broad continuation of trends seen over the past decade.
Indeed, sales of combustion-engine cars in China peaked in 2017 and they have been declining ever since, shown in the figure below.
Impact of Hormuz
Part of the reason for the advance of NEVs in 2026, said Chinese technology news outlet OFweek, was petrol cars “giving up market share” as they were outperformed by electric alternatives.
Cui Dongshu, secretary-general of the CPCA, cited higher petrol prices as an explanation for September’s weak combustion-car sales, in comments to financial news outlet National Business Daily.
Imports of oil into China in January-September have fallen 15% compared to 2025, equivalent to 470m barrels, as ongoing conflict tightened supply and drove up prices.
China’s passenger-car NEV fleet has displaced 143m barrels of oil so far during the strait of Hormuz crisis, Euan Graham, senior energy analyst at thinktank Ember, tells Carbon Brief.
EVs “accounted for 12% of the decrease in China’s oil use post-Hormuz”, according to an estimate provided to thinktank the Brookings Institute by an unnamed analyst.