Climate & Debt: Interconnected crises & responses

an online and in-person conversation on how the climate and debt crises are deeply connected–and what we can do about it

Posted by the DEAL Team July, 08, 2025 1 likes

Sevilla, Seville, Spain

An online webinar and an in-person official side-event during the UN Financing for Development conference in Seville took place June 12 and July 01 2025, respectively, which discussed the vicious cycle between the debt crisis and climate crisis, identifying practical ways in which reform of the international financial architecture can help to break this cycle.

An exciting line-up of debt and climate justice speakers – including Andrew Fanning, the DEAL Team's Research & Data Analysis Lead – discussed the different ways in which sovereign debt crises accelerate the climate crisis – and how climate crisis in turn deepens debt crises. Watch the webinar recording below.

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The events focused on the big picture contrast between the brutally enforced external debts owed by lower income countries relative to the much larger but unenforced climate debts owed by rich countries. How can reform to the international financial architecture help to address this imbalance?

Both the climate and debt crises – and current responses to them – have a disproportionate impact on women and girls, especially those facing intersecting discriminations. Speakers identified effective actions and responses that could help to break this cycle of injustice that perpetuates colonial relationships between Global North and Global South countries, including through:

A UN Framework Convention on Debt,
Reform of Private Credit Rating Agencies
Bold action on progressive domestic resource mobilisation
Delivery of ambitious grant-based climate finance,
Progress on the UN Convention on International Tax Cooperation, and
A systematic focus on building caring economies and societies, for both people and the planet.

The online webinar anticipated an official side-event of the same title that occurred in-person at the UN Financing for Development Conference in Seville (FFD4) on 1st July. An engaged audience of 60-70 people attended the in-person side-event, which illustrates a high level of interest in the topic, given the large number of parallel sessions ongoing at the UN conference.

Progress being made on these key actions in the negotiations towards the final draft of the FFD4 Outcome Document was assessed, flagging additional actions needed beyond this – including at UN General Assembly, in climate negotiations at COP30, and beyond.

Official side-event on climate & debt during the UN Financing for Development conference (Seville, July 2025)

Format

The webinar and in-person event were facilitated brilliantly by David Archer from ActionAid, with a brief introduction followed by panels and audience Q&A. The webinar format included:

Introduction - David Archer (ActionAid)

1. First Panel : Understanding the links between debt and climate - including data overview by Andrew Fanning (Doughnut Economics Action Lab), Rebecca Thissen (Climate Action Network)

2. Second Panel - Debt in the context of FFD - where we are, where we need to go, what is going to happen, what next? Jason Braganza (Afrodad) & Iolanda Fresnillo (Eurodad)

3. Third Panel: Additional elements to consider in linking debt and climate – human rights and public services - Maria Ron Balsera (CESR) ; feminist analysis - Emilia Reyes (Equidad) ; credit rating agencies - Bhumika Muchhala (TWN); mobilisation in different spaces - Esther Agaja (Debt4Climate);

4. Respondents and Q&A Mariana Paoli (Christian Aid) + Carola Mejia (Latindad) + Bronwen Tucker (OCI) opening up to Q&A session