The agreement by G7 leaders to mobilise billions of dollars to help developing countries tackle climate change through the “build back better world” initiative is a welcome development (“G7 set to agree ‘green belt and road’ plan to counter China’s influence”, Report, June 13).
But to address the unprecedented recovery from the Covid pandemic, as well as tackle the climate, biodiversity and poverty crises, G7 leaders need to collaborate with rather than confront China.
Finance is needed for “hard” infrastructure like renewable energy and sustainable cities, but also for green solutions provided by nature like improving mangroves and coral reef ecosystems. Plans need to address inequality and uphold the rights of indigenous peoples and other marginalised people, like Turkana communities in northern Kenya who have lost access to land due to wind power developments.
Recent research from the International Institute for Environment and Development shows that China, as the main bilateral lender to low-income countries, holds the key to unlocking debt relief.
Whereas G7 countries could raise $650bn for a green recovery initiative through the reallocation of special drawing rights.
It is therefore critical that the new G7 initiative works alongside, not in competition with, China’s Belt and Road Initiative to deliver an inclusive and well-financed package that meets the needs of the poorest and addresses the climate and nature crises.
Andrew Norton
Director, International Institute for Environment and Development
London WC1, UK