Opponents of the World Bank’s solution to climate change, the Climate Investment Funds (CIFs), recommend the UN Framework Convention on Climate Chance (UNFCCC) as a much better alternative. One of their key grievances is the Bank’s intention to issue loans as well as grants to help developing countries hinder and adapt to climate change.
Why would such loans be illegitimate? The UNFCCC makes it very clear: developed countries are primarily responsible for climate change. Therefore, “as historical polluters and due to their higher technological and economic capabilities, developed countries should shoulder the main burden for resolving the crisis” (Celine Tan, Third World Network). Issuing loans for climate financing will put poor countries into illegitimate debt for a problem caused by the industrialization and economic growth of richer nations. At a time when poor countries have to face their own development challenges, debt repayments will further entrap them in economic stagnation.