In principle, the money pledged by developed nations for the developing world, of $300 billion a year in climate finance, makes sense. One could dicker over the amount, and many affected countries in the Third World have already described the amount as too little. However, it is only right that the developed world pay the cost of the repair and rehabilitation of the ravages of climate change. After all, climate change is occurring because the developed countries paid no attention to pollution while developing, and poured greenhouse gasses into the skies with abandon. Even now, headed by US President-elect Donald Trump, there are climate change deniers, who feel that there is no need to switch from nonrenewable fuels, and who feel that there should be unrestricted development of fossil fuels allowed. This sentiment exists in developed countries, but also in other countries anxious for development on the Western model. There is also the problem of where to find the money. That it is felt that trillions of dollars are not enough, means that the sums involved are colossal. Only the developed countries can put up the money.
However, there is a problem. The countries worst affected by climate change are the ones already the most heavily indebted. The developed world is lending the money, not giving it, and is going to charge interest. The previous loans to underdeveloped countries at least were supposed in theory to lead to development which would generate the revenue that would help pay off the debt. Instead, the loans were meant to be embezzled by the elites the developed world had left behind when they left their colonies, so as to buy their political loyalty. The elites decamped with their ill-gotten gains to the metropoles, leaving behind heavily indebted countries. This time around, the loans will not be used for revenue generation, but to replace losses, or fortify existing structures against damage caused by climate change.
There is thus even less chance of enabling repayment. It will encourage embezzlement by the corrupt, and avoidance of debt by the honest. The developed nations are grossly mistaken to think that they can shut the worst affected countries up by getting them further into debt. Perhaps most importantly, they should not forget that they will suffer the effects of climate change too.
