More than 50 developing countries in the world are at risk of default and bankruptcy.

November 12, 2022 11:36

Inflation, the energy crisis and rising interest rates are putting more and more countries at risk of default, according to Achim Steiner, director of the United Nations Global Development Program.

Mr. Achim Steiner - Director of the United Nations Global Development Program

"Currently on our list, 54 countries are at risk of default. If you add in a further interest rate shock, borrowing becomes more expensive, coupled with high energy prices, high food prices - some countries will be unable to repay their debts," Mr Steiner said.

Speaking at the United Nations climate summit - COP27, Mr Steiner said any such default would create more problems for solving the climate crisis, according to the Guardian.

“The debt problem has now become such a big problem for so many developing economies that dealing with the debt crisis has become a top priority,” Mr Steiner warned.

Some developing countries risk walking away from UN climate talks if developed governments fail to deliver on long-standing promises to poor nations.

That is $100 billion a year in support to help them cut greenhouse gas emissions and adapt to the impacts of extreme weather, Mr. Steiner emphasized.

Low-income countries struggling to protect themselves from climate change have repeatedly called on nations that grew rich on fossil fuels to provide financial support, according to CNBC.

UN Secretary-General Antonio Guterres has echoed the call, saying high-income countries must take the lead in supporting poorer countries.

According to the New York Times, wealthy countries, including the United States, Canada, Japan and most of Western Europe, account for only 12% of the global population, but are responsible for 50% of the total greenhouse gases that have warmed the planet. These are emissions from fossil fuels and industry over the past 170 years.

Of these, the US is responsible for the largest proportion of CO2 emissions.

According to the United Nations, fossil fuels — coal, oil and gas — are by far the biggest contributor to global climate change, accounting for more than 75% of global greenhouse gas emissions and nearly 90% of total carbon dioxide emissions.

According to the World Health Organization, climate change is expected to cause an additional 250,000 deaths each year from malnutrition, malaria, diarrhea and heat stress between 2030 and 2050.

By 2030, the direct cost to human health is estimated at $2-4 billion per year. Regions with weak health infrastructure – mainly in developing countries – will be least able to cope without support for preparedness and response.

According to Tuoi Tre