My Lords, I too am grateful to the noble Baroness, Lady Northover, for the opportunity to debate this hugely significant subject.
I too am looking forward to the maiden speech by my right reverend friend the Bishop of Winchester, who has real expertise in this area.
When it comes to thinking about the impact of climate change on developing nations, the injustices at play are twofold. First is the fact that those nations that are being and will yet be most affected by climate change are those that have contributed least to the crisis. Secondly, much of the funds that fuelled our Industrial Revolution, wherein were sown the seeds of climate change, were generated by extracting and exploiting the resources of many of those regions, most devastatingly, of course, through the transatlantic chattel slave trade.
Our moral debt is as great as the climate emergency we face, so I was pleased to see that the Government’s international development White Paper, published in November, included “tackling climate change” in its title. I was also most encouraged to read the Government advocating for a move away from donor-recipient models of aid towards partnerships built on mutual respect, putting greater value on the voice, perspectives and needs of developing nations, as well as supporting local leadership. The paper hearteningly states:
“We will engage with humility and acknowledge our past”.
With that in mind, might the Minister inform the House of the outcomes of the Secretary of State’s meeting with the Barbadian Prime Minister in December, and whether they discussed the issue of reparations? Responding with humility and honestly acknowledging our past includes such complex issues, which directly affect a country’s ability or inability to respond to climate change.
I have said that we as a country carry a weighty moral debt, yet for developing nations the financial debt is a more tangible problem, as the noble Baroness, Lady Northover, and the noble Lord, Lord Hannay, have both already mentioned. According to the World Bank, in 2022 the external debts of countries with low and middle incomes reached $9 trillion, double the figure in 2010. The cost of servicing these debt payments is crippling, and drains funds away from what is needed to become climate resilient. Analysis by Development Finance International has shown that lower-income countries spend over 12 times more on debt payments than on adapting to the climate crisis. Indeed, some are turning to fossil fuel extraction to generate the revenue needed to reduce the burden.
We have an opportunity to build on our previous track record of debt relief. Under previous Governments, 49 low-income countries had all or part of their debts to the UK forgiven. Now many creditors are private commercial entities rather than organisations such as the IMF or the World Bank. As a result, 90% of global debt contracts are overseen by English law. We are in a unique position to legislate for private creditors to offer debt relief so climate-vulnerable countries can invest in adapting to the changes that are to come. At COP 28, the UK, along with France and the World Bank, committed to pause debt repayments when climate disasters hit. This is a valuable step forward but, when so little is owed to the UK, should we not at least ask the same of commercial creditors that operate under English law?
Debt and climate are inextricably linked so, now that the Secretary of State has put climate change at the centre of the new international development White Paper, will the Government revisit the International Development Committee’s report on debt relief and reconsider its recommendation for new legislation? We cannot undo the errors of our past, but we can let ourselves be changed by them and commit ourselves to doing justice to our global neighbours. I urge us to play our part in doing so.
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