Who Should Pay for the Planet’s Bill?

The document argues that G20 climate finance often prioritizes private profit over public welfare, trapping vulnerable nations in debt through loan-based funding and 'de-risking' strategies. It calls for a shift toward grant-based funding and public investment based on the 'polluter pays' principle to ensure a just energy transition.

• Developing countries face a significant funding gap, requiring between $5 trillion and $6.9 trillion to implement national climate plans by 2030. While developed countries originally pledged $100 billion annually by 2020, they failed to meet this goal, though the target was later increased to $300,000 at COP 29 in Baku, Azerbaijan.
• Current climate finance structures often increase debt vulnerability rather than promoting justice. For example, 96% of the financing for South Africa’s Just Energy Transition Plan (JETP) consists of loans instead of grants, contributing to a cycle where the poorest nations spend more than twice as much on debt servicing as they do on climate adaptation.
• The G20's reliance on 'de-risking' strategies—using public funds to absorb risks for private investors—creates fiscal liabilities for governments and can lead to the privatization of essential infrastructure. In South Africa, this has resulted in high-cost contracts with Independent Power Producers (IPPs) that lock in high electricity tariffs for consumers for 20 years or more.
• Climate change is linked to severe human rights violations and health crises. Between 2020 and 2025, an estimated 250,000 additional deaths occurred due to climate-induced heat stress, malnutrition, diarrhoea, and malaria. Furthermore, global hunger and malnutrition are predicted to increase by 20% by 2050.
• The document advocates for a justice-based response to climate action grounded in the 'polluter pays' principle and the UNFCCC’s 'Common but Differentiated Responsibilities' (CBDR), asserting that those who caused the crisis and have the financial capacity should bear the costs.
• The G20 agenda, influenced by South Africa, includes discussions on addressing a $6 trillion per year climate finance shortfall, reducing the cost of capital for developing countries, and exploring the use of carbon credits to generate additional funding.

APA

Institute for Economic Justice (2025). Who Should Pay for the Planet’s Bill? https://iej.org.za/wp-content/uploads/2025/08/IEJ-G20factsheet6-Climate-Finance-web-1-1.pdf

Chicago

Institute for Economic Justice. Who Should Pay for the Planet’s Bill? 2025. https://iej.org.za/wp-content/uploads/2025/08/IEJ-G20factsheet6-Climate-Finance-web-1-1.pdf.

Wikipedia

{{cite report |author=Institute for Economic Justice |title=Who Should Pay for the Planet’s Bill? |date=August 2025 |url=https://iej.org.za/wp-content/uploads/2025/08/IEJ-G20factsheet6-Climate-Finance-web-1-1.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{instituteforeconomicjustice2025who, author = {{Institute for Economic Justice}}, title = {{Who Should Pay for the Planet’s Bill?}}, institution = {Institute for Economic Justice}, year = {2025}, month = aug, url = {https://iej.org.za/wp-content/uploads/2025/08/IEJ-G20factsheet6-Climate-Finance-web-1-1.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }