Neocolonial Debt Traps Are Forcing Poorer Countries to Rely on Fossil Fuels

[diva77]

To break our global dependence on fossil fuels, we must take on neocolonial debt, researcher Tess Woolfenden says.

By C.J. Polychroniou, Truthout September 7, 2023

https://truthout.org/articles/neocolonial-debt-traps-are-forcing-poorer-countries-to-rely-on-fossil-fuels

In the current age of climate emergency, many countries in debt are being forced by Global North elites and institutions to continue to rely on fossil fuels in order to repay loans taken from rich countries. This neocolonial debt trap creates a vicious cycle because — as a new analysis from the organization Debt Justice shows — revenues from fossil fuels are not enough to repay debts and instead leave countries even deeper in debt while at the same time worsening the prospects of achieving the goal of zero global emissions by 2050.

This debt trap is one of many ways in which colonialism continues to shape the current era. While dozens of countries gained independence through successful decolonization struggles after World War II, colonialism persists through the use of economic and political pressures to control “dependencies” as a means of reinforcing global capitalism.

In the exclusive interview for Truthout that follows, Tess Woolfenden, senior policy and research officer at Debt Justice and the author of the aforementioned report, discusses the dynamics between debt and fossil fuels, highlights the consequences of fossil fuel colonialism and offers concrete policy solutions for breaking the cycle.

C. J. Polychroniou: Tess, it’s a well established scientific fact that greenhouse gases like carbon dioxide (CO2) cause global warming. The burning of fossil fuels — coal, oil and gas — accounts for over 75 percent of greenhouse gas emissions and 90 percent of carbon dioxide emissions, making them the largest contributor to global climate change. Yet, fossil fuels still account for more than 80 percent of global energy production and the energy transition proceeds very slowly. In fact, it is projected that by 2023, “fossil fuels will still account for 78 percent of the global energy mix.” Why is it so hard to phase out fossil fuels?

SNIP

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Good to see this being addressed -- and on p22 of the report (see link in excerpt) they list solutions such as debt cancellation.

[LiberaBlueDem]

1. Americans are addicted to oil

We use more oil than anyone, and our businesses thrive on the cheap dirty oil being bought and burned all over the world.

And we line up at gas stations with ever bigger gas burners so we can buy fast food faster. Crazy, right?

[diva77]

2. I frequently pass by a long line of about 25 giant SUVs, engines running, waiting to go thru the

the In & Out Burger drivethru. Literal illustration of our addiction to oil.

[EX500rider]

3. So if they had no foreign debt they wouldn't sell their oil? I doubt that

In Nigeria for example oil revenues contributed 2/3 of state revenues.

[diva77]

4. The solutions being offered are a little more involved than that alone

from the document link in OP (sorry about the formatting) --

2. Debts accrued from fossil fuel projects
should be recognised as illegitimate and
cancelled so countries are not forced to
make repayments for activities that have
caused harm to citizens or locked countries
in climate harmful activities.

3. Significantly scale up grant-based, new
and additional public climate finance,
as a form of reparations in light of the
climate and ecological debt owed by the
global north to the global south. This will
allow global south countries to implement
adaptation and mitigation measures,
including decommissioning fossil fuel
projects, and to address Loss and Damage
without having to go into more debt.
4. Bilateral and multilateral finance should
be aligned with a 1.5 degree warming
scenario and fair shares calculations,
and not be used to finance fossil fuels.
Multilateral and international financial
institutions should set deadlines for
shifting finance out of fossil fuels and
into sustainable, climate measures for
adaptation, mitigation and to address
Loss and Damage.

A starting point would be for multilateral
and financial institutions to join the
Glasgow Statement, a joint commitment
launched at COP26 in 2021 to end new
direct international public finance for
fossil fuels by the end of 2022 and instead
prioritise public finance for clean energy.191

[leftstreet]

5. DURec

well worth the read

thanks for posting

[crickets]

6. K&R for visibility.