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Uganda leads push for climate grants, not loans, for Africa

African nations are demanding that wealthy countries pay for climate damage through grants rather than loans, arguing they bear disproportionate impacts despite minimal emissions.

Uganda's Deputy Speaker of Parliament, Thomas Tayebwa, has called for a coordinated shift in how the world finances climate action in developing countries, arguing that African, Caribbean and Pacific nations must collectively demand climate justice at international negotiations. Speaking as President of the Organisation of African, Caribbean and Pacific States (OACPS) Parliamentary Assembly following resolutions adopted on Monday, Tayebwa said member states should insist that countries responsible for the largest share of global emissions contribute more to addressing climate consequences. The push for reform will feature prominently in discussions with the European Union during a joint parliamentary assembly in Brussels that runs through Friday.

Tayebwa highlighted the imbalance at the heart of the dispute. OACPS countries collectively emit no more than 6 per cent of global emissions on average, yet face enormous climate impacts including rising sea levels, coastal erosion and damage to coral reefs in the Caribbean, alongside drought, hunger and famine in Africa. Pacific nations confront increasingly difficult environmental conditions. "The ones who are emitting a lot are not feeling the impact, as we are, who are emitting less," Tayebwa told delegates, calling for the principle of polluters paying for climate damage to move beyond political declarations and become a practical financing commitment.

Dr James Murombedzi, former head of the Africa Climate Policy Centre at the United Nations Economic Commission for Africa, warned that the current financing model available to developing countries was deepening debt burdens. Presenting findings titled Financing Climate Resilience Without Deepening Debt, Murombedzi said the heavy reliance on loans for climate interventions was inappropriate for countries already struggling to finance development and respond to recurring disasters. He recommended prioritising grants for adaptation projects that do not generate direct revenue, while reserving loans for revenue-generating investments. He also called for direct financing for Loss and Damage to support emergency response, recovery and reconstruction in countries experiencing climate-related destruction.

Murombedzi's other recommendations included expanding pre-arranged disaster financing mechanisms, incorporating climate-resilient debt clauses that allow temporary suspension of loan repayments when severe climate disasters occur, and simplifying application procedures. He also urged greater investment in public goods including food security and early-warning systems. Beyond financing, he noted that OACPS delegations at United Nations climate conferences were often smaller and less adequately resourced than those from wealthier countries, limiting their capacity to conduct research and participate effectively in negotiations.

Delegates from multiple member states reinforced the calls for reform. Mauritius representative Mohamed Ehsan Juman cited a United Nations Environment Programme report showing an annual deficit in financing for adaptation to climate change of 272 billion euros by 2035. Jamaica's representative, Heroy Clarke, challenged lending for climate disaster recovery, arguing that countries should not borrow money and pay interest to rebuild after climate disasters when their contribution to global emissions has been minimal. Barbados delegate Dwight Sutherland called for support for the Bridgetown Initiative, which seeks to reform international financial arrangements to enable climate-vulnerable countries to access affordable financing without undermining development priorities.

For Uganda and other developing nations, the shift from loans to grants would reduce the debt burden on governments while freeing resources for emergency response and development priorities threatened by climate impacts.