From Debt Burden to Climate Burden: A Historical Look at Debt and Climate Change

ABSTRACT Recent research underscores the disproportionate burden of climate change on developing countries, often exacerbated by historical debt. The escalating debt crisis can hinder investments in climate adaptation and mitigation, while climate‐related disasters can further exacerbate debt burdens. By delving into the complex interplay between debt and climate change, this paper explores their historical intersection, examining how these interconnected issues have shaped global inequalities. It delves into the literature on the historical context of debt accumulation in developing countries, the role of international financial institutions, and subsequent efforts to address debt burdens. The concept of “climate debt”—the notion that developed nations bear a responsibility to developing countries for their historical emissions—is critically assessed. The paper further evaluates the potential of debt relief as a mechanism for achieving climate justice, enabling developing countries to redirect financial resources towards climate‐resilient development and address the enduring legacies of colonialism and unequal development. Finally, through case studies of debt relief programs, the paper explores their implications for climate action, focusing on their capacity to contribute to a more equitable and sustainable future. The paper makes a key contribution to a more informed discourse on how debt relief can be used to address climate change, offering practical insights for policymakers and researchers. It provides a crucial foundation for developing strategies that promote climate justice and foster a more equitable and sustainable future. This article is categorized under: Climate, Nature, and Ethics > Climate Change and Global Justice Integrated Assessment of Climate Change > Assessing Climate Change in the Context of Other Issues Climate and Development > Social Justice and the Politics of Development