Nikkei Asia reported on November 26 that Bangladesh and Nepal are actively seeking new approaches to climate financing, aiming to avoid financial crises caused by loan-based climate financing. Currently, Bangladesh and Nepal hold $3.4 billion (340 million dollars) and $60 million (60 million dollars) in climate-related debt respectively, facing significant climate financing risks. In response, the governments of both countries are actively taking measures to reduce dependence on foreign debt and seek external grant support. In 2024, the Bangladeshi government launched a national climate coordination platform to simplify interactions between development partners, non-governmental organizations, and civil society. Currently, Bangladesh has drafted a new climate financing strategy and issued climate-themed bonds, with a target of raising $2 billion (200 million dollars). However, the capital market has responded coldly. Meanwhile, the Nepali government is committed to developing early warning systems for extreme weather, installing monitoring equipment for glacial lakes, and building infrastructure that can adapt to climate change. Additionally, the Nepali government plans to focus on developing industries related to forestry and biodiversity, such as nature tourism and small-scale agricultural enterprises, aiming to revitalize the economy and employment in disaster-affected areas. Analysts point out that the current loan-driven climate financing model is prone to plunging developing countries into debt crises, while major emitting countries are exempt from responsibility. Therefore, the governments of Bangladesh and Nepal should increase forward-looking, high-intensity resilience investments, promoting the transition of climate financing from debt-based loans to grant-based support.
Original: www.toutiao.com/article/1849960078633993/
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