A new ActionAid report has uncovered a startling truth about the industries fueling the climate crisis in the Global South.
Fossil fuel and industrial agriculture sectors are draining an estimated US$677 billion annually in public subsidies from climate-vulnerable countries, while these same nations struggle to finance critical climate action.
Titled “How the Finance Flows: Corporate Capture of Public Finance Fuelling the Climate Crisis in the Global South”, the report reveals that between 2016 and 2023, fossil fuel industries received an average of US$438.6 billion per year in public finance, while industrial agriculture saw US$238 billion in subsidies annually.
This staggering figure is more than 40 times what renewable energy projects receive in the region, despite the urgent need for clean energy transitions.
Arthur Larok, Secretary General of ActionAid International, condemned the corporate grip on public funds, stating, “Wealthy corporations are draining the life out of the Global South, siphoning public resources that could be used for climate solutions.”
The report also highlights the failure of Global North countries to deliver on climate finance promises, with grants falling far short of the support needed to transition to sustainable energy and agriculture systems.
According to Teresa Anderson, ActionAid’s Global Lead on Climate Justice, “The lack of finance for climate solutions is forcing Global South governments into harmful development pathways.”
Voices from affected communities, such as Jonah Gbembre from Nigeria’s Delta State, further emphasize the damage caused by fossil fuel companies like Shell.
Gbembre shared how oil drilling has devastated local ecosystems, polluted rivers, and endangered livelihoods.
ActionAid is calling for a redirection of public finance towards just transitions, decentralization of renewable energy systems, and increased support for agroecological farming practices.
Additionally, the report urges wealthy nations to provide trillions in climate finance and regulate the financial sector to end destructive investments.
As the climate crisis intensifies, the report calls for a global reckoning with finance flows that prioritize corporate profits over the needs of vulnerable communities, urging urgent reforms ahead of COP29.
Ghana | Atinkaonline.com