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Laurie van der Burg is global public finance campaign manager at Oil Change International. Mariana Paoli is global advocacy lead at Christian Aid. Rebecca Thissen is global advocacy lead at Climate Action Network International.

While climate disasters intensify across the Global South, another connected crisis is quietly unfolding – one with less media coverage, but just as deadly. Governments are drowning in debt, and the money they need for clean energy and resilience is flowing not into solar panels, but to creditors in the Global North.

Meanwhile, the US is on a mission to make this debt and climate spiral even worse: it is pressuring the World Bank and other global institutions to abandon climate action and to instead use their public funds to underwrite the private profits of American and multinational corporations, including through investments in fossil fuels.

Climate shocks and volatile currencies hike debt burden for poor countries

At meetings this week in New York to prepare for the United Nations’ 4th Financing for Development conference (FfD4) that will take place in Seville in June, countries face a clear choice: reject these attempts – including US efforts to weaken its outcomes – or lay the foundation for a renewed financing framework in Seville – one that will ensure the world’s poorest countries get the resources they need to survive.

A system built to extract

Many Global South countries now spend five times more on debt repayments than on climate action. Some cannot rebuild after floods or droughts because they’re paying interest on loans from decades ago. Others remain dependent on expensive fossil fuel imports – or stuck exporting oil and gas just to stay afloat.

This isn’t misfortune – it’s design. The global financial system was built by – and continues to benefit – the rich countries that did the most to cause the climate crisis. Today, they are demanding loan repayments from those who contributed the least, while offering “climate finance” largely in the form of new debt.

Ghana, for example, received over $2 billion in World Bank financing for oil and gas projects, yet project delays have left it reliant on expensive fossil fuel imports. On top of that, “take or pay” contracts that guarantee profits for foreign investors but not public coffers are costing the country over $1 billion a year, while many Ghanaians still lack access to affordable energy.

This is not an isolated case. Many countries are trapped in a vicious cycle of relying on fossil fuel extraction to service their debts, fueled by conditions imposed by international financial institutions like the International Monetary Fund (IMF). A study from the ODI think-tank found that debt levels rose sharply in the last decade in major oil and gas exporting countries across the Global
South.

Global South countries have the solutions

Global South groups – such as the African Group and the Alliance of Small Island States (AOSIS) – have put forward clear, workable solutions. They have successfully pushed for establishing a UN Tax Convention to close tax loopholes and stop the outflow of wealth through tax havens, negotiations for which are ongoing. They have also repeatedly called for dramatically increased public, grant-based climate finance.

Global billionaires tax to fight climate change, hunger rises up political agenda

With 2025 declared a Jubilee year for debt forgiveness by the late Pope Francis, the calls for debt cancellation and to adopt a UN Sovereign Debt Convention have become impossible to ignore. The current draft text for FfD4 calls for a process to establish such a Convention, which would provide an alternative to the insufficient attempts to tackle the debt crisis by the G20 and the IMF, and finally put debtor and creditor countries at equal footing.

The Convention could set up a multilateral sovereign debt resolution mechanism to deliver faster and fairer debt restructurings and cancellation. It could develop a new approach to debt sustainability framework and analyses (DSAs), ensuring that the assessment is aligned with human rights, climate and sustainable development needs.

But the Global North is blocking reform

Instead of stepping up and supporting financial system reform, wealthy governments – including the UK, France, and Germany – are cutting aid and outsourcing their responsibilities to the private sector. They are obstructing bold action in UN spaces and instead push to keep decision-making behind closed doors in elite clubs like the OECD, where poorer countries have no seat at the table. Their approach of prioritising the mobilisation of private money and offering loans rather than grants or highly-concessional public money has been tested and failed. Even the World Bank chief economist Indermit Gill admitted that the “Billions to Trillions” agenda never delivered.

Trump’s first 100 days: US walks away from global climate action

Rather than supporting harmful approaches and piecemeal reforms, the EU and UK should strengthen their alliances with Global South countries and back their proposals for system change and more democratic governance of financial institutions.

This would help free up the public money needed to fund the solutions. Money is out there, it is just a matter of political will. Just the world’s 10 richest individuals hold more than $1 trillion in combined wealth. Fossil fuel companies made $1 trillion in profits last year. Governments still give hundreds of billions annually in fossil fuel subsidies, paid for by the public.

Taxing the ultra-wealthy, making polluters pay, ending fossil fuel handouts, and cancelling exploitative debts, could free up more than $5 trillion a year – enough to fund a global Just Transition and build a
more equal, stable world.

Seville is a moment of reckoning

The Seville conference is a rare opportunity to prove that international cooperation can still deliver in an age of crisis. For too long, climate finance, debt relief, tax justice, and fossil fuel phaseout have been treated in isolation. But these crises are deeply connected – and demand a unified response.

Seville must be the moment when governments back Global South–led solutions that can start shifting the global economy toward justice, resilience, and sustainability. At the heart of that effort must be securing a UN Sovereign Debt Convention – to finally rebalance a system rigged against the world’s poorest.

Wealthy countries must rise to the occasion – not with more financial engineering, but by strengthening the public tools that serve the common good. Anything less isn’t climate action. It’s exploitation with a green label.

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Without debt relief, climate action will fail

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Battle over cleaning up shipping set to resume at London talks

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The US is expected to resume its attempt to sink measures for a greener global shipping sector at closed-door talks between governments at the International Maritime Organization (IMO) in early September.

The US and oil-producing allies like Saudi Arabia want to weaken a proposed plan for cleaner fuels that aims to reduce planet-heating emissions from the industry, which relies heavily on dirty bunker fuels. Shipping currently represents 3% of global emissions.

Those that want a softer system are likely to back a Liberian proposal which expert analysis suggests would see emissions fall by only half at most by 2050, far short of the sector’s agreed climate goals.

After several years of debate, governments provisionally agreed in April 2025 on the “Net Zero Framework” (NZF), a series of emissions reduction targets for shipowners, backed up with financial rewards for meeting the targets and fees for missing them.

But in October 2025, after a high-profile intervention from US President Donald Trump and threats of sanctions and visa restrictions, the US convinced a majority of voting nations to postpone the adoption of the NZF for a year.

Ralph Regenvanu, climate minister for the Pacific nation of Vanuatu, called the delay “unacceptable” given the urgency of accelerating climate change.

After a round of low-profile talks in May, the first of three further sets of talks on how to clean up shipping will begin at the IMO’s riverside headquarters in London on Tuesday, culminating in a final public session in November.

Em Fenton, who follows the talks as senior director of climate diplomacy at Opportunity Green, an NGO focused on aviation and shipping, said governments should not be sidetracked by alternative proposals to the NZF, calling them “a distraction from a hard-fought multilateral compromise”.

“If countries want to deliver a just and fair maritime transition, there is really only one choice: back the NZF and stand together in solidarity against those who would tear it apart,” Fenton added.

Five proposals on the table

Governments will discuss five different proposals submitted in advance of next week’s meeting. The most ambitious of these is from the Pacific island nation of Tuvalu, which has proposed a levy on the entirety of a ship’s emissions rather than just those above a certain level, as the NZF envisions.

That had been the original demand of Pacific nations before the NZF was provisionally adopted in April 2025. At the time, Tuvalu’s transport minister Simon Kofe described the NZF as disappointing and not ambitious enough.

For this reason, six Pacific countries abstained in the vote on the NZF. While they supported the original plan for its adoption in October 2025, they have used the delay to push again for more ambition.

John Kautoke, advisor to a group of Pacific nations called 6PAC+, told Climate Home News that the NZF “cannot diminish its already inadequate ambition. If anything, the NZF must increase in ambition if we are going to renegotiate its parameters.”

    Analysis by the Institute of Marine Engineering, Science and Technology (IMarEST) suggests that, of the five proposals, only Tuvalu’s would meet the 2030 and 2040 emissions reduction targets for global shipping that were agreed by governments in 2023. Those were for cuts of 20% between 2008 and 2030, 70% by 2040 and then reaching net zero “by or around, i.e. close to 2050”.

    Despite this, the UK, Australia, Canada and South Africa have formally proposed that governments adopt the NZF, which won support in a 63-13 vote among governments at the April 2025 talks. Trump’s US walked out halfway through.

    According to IMarEst’s analysis, while the NZF proposal will not be enough to meet the industry’s targets, it will reduce emissions more cheaply than the Pacific proposal.

    A proposal by Brazil – which fought hard for the NZF last October – suggests tweaking the framework to make meeting targets easier in the short term and harder in the long term.

    While this compromise will make it more appealing to the owners of polluting ships and countries that support them, IMarEst estimates it would lead to higher cumulative emissions than either the NZF or Pacific proposals.

    The NZF stipulates that fees for high-polluting shipowners should be be put into a Net Zero Fund and used to promote clean shipping fuels and a fairer transition. The Brazilian proposal would delay raising and spending these funds by two years, from 2029 to 2031.

    Liberia’s proposal weakens emissions cuts

    The US and Saudi Arabia are likely to swing behind a new proposal from Liberia, whose government makes millions of dollars a year selling the right for shipowners to register their vessels in the small West African nation via a US-based company.

    This proposal would weaken the emissions reduction targets. IMarEst says it would cut the industry’s emissions at most by a half by 2050, falling far short of the target agreed in 2023 for international shipping to reach net zero “close to 2050”.

    It would also replace the NZF’s fees for missing targets with a carbon trading system. As a result, there would be no Net Zero Fund and therefore less money available to incentivise green fuels and make the transition more equitable for poorer nations.

    Pacific advisor Kautoke said that, as well as preventing shipping from reaching zero emissions by 2050, Liberia’s proposal would mean the Pacific “will not receive any support to deal with the disproportionately negative impacts created by the cost of the transition”.

    “We get a double blow if we adopt the Liberian proposal,” he warned. “We get all the cost of a transition without any support, and we have an industry that continues to burn fossil fuels to an unforeseen point.”

    Japanese proposal favours shipowners

    Japan has submitted a late proposal to amend the NZF so that shipowners have more control over how the fees they would pay for emitting above a set threshold are spent.

    University College London professor Tristan Smith has argued that this change means there will be no central mechanism to incentivise investments in clean fuels. He wrote on LinkedIn that under the system put forward by Japan, shipowners would be able to select which green projects their fees would go to. They could choose their own or those of a sister company or other shipowners, rather than funding broader just transition projects that would benefit marine workers or developing countries hit by rising shipping costs.

    Despite its flaws, Smith added that Japan’s proposal “could still get taken seriously by some, given how appealing it may seem to shipowners who have consistently demanded control of revenues, and given how the US and other member states have pushed back against the IMO Net Zero Fund and [greenhouse gas] pricing.”

    Tacit or explicit approval?

    Next week, governments are expected to make statements saying which proposals – or which aspects of proposals – they prefer. Another set of talks will be held from November 23-27 before a potentially final round from November 30-December 4.

    A new framework to tackle shipping emissions could be adopted at those talks if two-thirds of countries that are present and signed up to a regulation called Marpol Annex VI – endorsed by just over 100 states – vote in favour of it, as they did in April 2025.

    The US and its allies are also trying to change the rules to make the next stage more difficult. Decisions that have been adopted at IMO meetings usually take effect automatically unless a certain number of countries object within a certain time period decided by governments, a system known as tacit approval.

    But the US wants that to require explicit approval instead, so that any new emissions standard would not come into force unless enough governments – representing a certain percentage of the world’s shipping fleet – actively indicate support for it.

    Critics say this change would give a small number of countries with large shipping registries the power to block implementation. Liberia has the world’s biggest shipping registry, run by an American company, followed by Panama and the Republic of the Marshall Islands.

    Liberia and Panama have supported the US at the talks on the Net Zero Framework. The Marshall Islands has long been one of the most vocal supporters of climate action in shipping but, with its officials and shipping registry income vulnerable to US retaliation, did not sign on to the recent Pacific proposal vowing to strengthen the NZF if it is re-opened.

    Brazilian negotiator Adriana de Medeiros Gabinio warned in April that the NZF’s opponents are trying to change the rules by which it comes into force as a “safety net to block” it.

    The post Battle over cleaning up shipping set to resume at London talks appeared first on Climate Home News.

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    Coles, Woolworths failing on deforestation commitments 

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    SYDNEY, Wednesday 26 August 2026 — New 2026 Sustainability Reports released by supermarket giants Coles and Woolworths this week demonstrate the retailers are failing on their commitments to end deforestation in their supply chains.

    Adele Chasson, Nature Policy Lead at Greenpeace Australia Pacific said:

    “These so-called sustainability reports are revealing. Despite their public commitments in 2024 and 2025, neither Coles nor Woolworths have taken deforestation-linked beef off their shelves. Meanwhile, bulldozers continue to tear up forests and bushland, pushing wildlife closer to extinction and causing mass toxic runoff to flow into the Great Barrier Reef. Millions of native animals like koalas are losing their homes to beef pastures each year, while the big supermarkets put off action.

    “Australians would be shocked to know that beef on the shelves of our biggest supermarkets could be pushing threatened species to the brink of extinction. Collectively Coles and Woolworths have made more than $2 billion in profits in the last year, profiting from the destruction of wildlife and precious Australian nature. Coles and Woolworths owe it to shoppers to deliver on their promises and end deforestation in their supply chains now.

    “As big beef buyers, Coles and Woolworths have an essential role to play in keeping Australia’s unique forests standing. They can help stop the Great Barrier Reef from being poisoned by runoff and protect iconic forest wildlife by taking deforestation off their shelves. It’s time these big companies put their money where their mouths are and follow through on their promise of sourcing and supplying deforestation-free beef.”

    Coles, Woolworths failing on deforestation commitments 

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    New Zealand moves to protect business with law curtailing climate litigation

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    New Zealand’s parliament has adopted a controversial new law blocking a whole avenue of climate litigation and shutting down its most advanced corporate lawsuit, which has been blamed by the government for shaking business confidence and investment.

    The Climate Change Response (Tort Liability) Amendment Bill, expected to take effect in the coming days after it is formally signed by the Governor-General, prevents all current and future civil claims for climate loss or harm under tort law.

    Justice minister Paul Goldsmith said last week that the aim was to give businesses “certainty around their climate change obligations”, noting it would not alter the government’s responsibilities under the Climate Change Response Act 2002 nor business obligations under the Emissions Trading Scheme.

    “Our response to climate change is best managed by the Government at a national level and not through piece-meal litigation in the courts,” he added in a statement.

    Such litigation, he said, “risks developing a new regime that contradicts the framework Parliament has already enacted” to tackle climate change.

      Goldsmith singled out a key domestic climate lawsuit brought by Northland iwi leader and activist Mike Smith against six big companies: dairy firms Fonterra and Dairy Holdings, energy firms Genesis Energy and Z Energy, New Zealand Steel and coal mining firm BT Mining. A seventh original defendant, Channel Infrastructure, was dropped after it permanently decommissioned its Marsden Point oil refinery.

      Smith argued that these companies had caused him harm under public nuisance and negligence law, as well as a third breach of a duty to cease contributing to climate change that has yet to be tested domestically. He did not seek financial compensation, instead asking for the companies to immediately stop emitting or contributing to net greenhouse gas emissions.

      In one of the most advanced corporate climate accountability lawsuits in the world, a trial had been scheduled for April 2027 after the Supreme Court unanimously allowed the case to continue.

      Corporate lobbying in the shadows

      Smith described the passing of the bill as “deeply concerning”, particularly as it coincided with the Supreme Court hearing another of his climate lawsuits. In that case, Smith v Attorney-General, he argues that the government’s response to climate change and its impacts on Māori communities in particular breaches rights to life and culture.

      “That timing raises profound questions about the separation of powers and the rule of law,” said Smith. “Whatever one’s view of the merits of these cases, it is deeply troubling when parliament intervenes to remove a legal pathway while the courts are actively considering fundamental questions about climate responsibility, rights and the crown’s obligations.”

      The bill – which says that no person (including the government) can be found liable in tort for emissions-related climate change effects – followed major lobbying efforts by the companies defending themselves in Smith’s lawsuit. They outlined a proposed legal amendment in a briefing note to the government in 2024.

      The centre-right government has been fiercely criticised over its lack of transparency in relation to this lobbying activity. The national ombudsman recently found that the Prime Minister’s Office effectively withheld information requested by the Environmental Law Initiative about meetings, discussions and conversations regarding Smith’s case.

      Green groups fail to stop bill

      The bill sparked huge concern among environmental campaigners in New Zealand and elsewhere. Greenpeace Aotearoa called it a “shocking abuse of executive power” and the vast majority of submissions to a parliamentary inquiry said it should be rejected.

      But in the end, it was adopted with little resistance, moving relatively smoothly through parliament, passing its third reading by 67 votes to 53. Sam Bookman, climate law lecturer at Melbourne Law School, told Climate Home News he was not surprised by this, given that the coalition government has a secure majority.

      A complaint has been made to the UN special rapporteur on climate change and human rights by Smith, the National Iwi Chairs Forum Pou Tikanga and youth coalition Climate Clinic Aotearoa over what they see as the government’s heavy-handed approach. Smith is also challenging the new law in yet another lawsuit.

      “Pathetic”: New Zealand plans to barely cut emissions between 2030 and 2035

      Bookman thinks it “very unlikely” that such a challenge will succeed, noting that New Zealand’s constitution is firmly anchored in parliamentary sovereignty.

      But the expert in climate law does not see the bill as the end of legal action in the country, noting that New Zealand has a “sophisticated climate litigation landscape with a growing number of specialist and experienced lawyers and NGOs”.

      The country is also approaching its next general election in November, and some opposition parties have pledged to restore access to the courts if elected.

      Amanda Larsson, global project lead on agriculture for Greenpeace International, said: “This law deserves to be tested, and I strongly encourage the international climate litigation community to unite and help defend New Zealanders’ fundamental right to hold polluters accountable before this becomes a global blueprint.”

      Copycat legislation on the rise

      New Zealand’s move is part of a small but growing legislative effort to shut down climate litigation around the world.

      In the US, Republican politicians introduced legislation in the House and Senate in April that would shield fossil fuel firms from climate liability lawsuits. Similar laws have already been passed at state level in Tennessee, Utah, Iowa and Louisiana.

      The German state of Bavaria has put forward a similar proposal to the Federal Council, aiming to block private climate claims as well as the recognition and enforcement of foreign judgments imposing such liability. There are also proposals to limit available remedies and actions in the Netherlands and Belgium.

      UN General Assembly backs “climate obligations” set by world’s top court

      Bookman said he expects more efforts to counter climate damages litigation and advised plaintiffs to think about how to respond, including drawing on broader support in opposing them.

      “Even though it’s very hard for plaintiffs to win these types of cases, companies are very eager to avoid the expense, embarrassment and political accountability that come even with unsuccessful lawsuits,” he said.

      The post New Zealand moves to protect business with law curtailing climate litigation appeared first on Climate Home News.

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