www.bloomberg.com
On the podcast Zero, Lisa Sachs argues the current climate finance system is failing to reduce emissions. Rather than redirecting existing financial flows, Sachs contends that institutions like the World Bank and the convention on climate finance are trapped in a "failed logic."
She argues they rely heavily on lending to Global South countries for renewable projects, which increases their debt rather than providing the necessary grants. Sachs asserts this approach is counterproductive because it constrains fiscal space and forces nations to prioritize debt servicing over climate action. She calls for a fundamental system overhaul to treat climate finance as a global responsibility, rather than debt, to achieve necessary decarbonization.
