The Wall Street JournalThe Wall Street Journal

Widening wealth gap drives talks for green finance pact at Paris summit

By Matthew Dalton and Andrew Duehren

22 Jun 2023 · 5 min read

informed Summary

  1. Wealthy nations' leaders are meeting in Paris this week to seek ways to encourage private investors to fund developing countries' efforts to combat poverty and climate change.

PARIS—The leaders of wealthy nations want private investors to send a flood of capital to poorer countries to lift them out of poverty and bankroll the response to climate change. Instead, those investor funds are drying up.

Rising interest rates and financial stress have choked off finance to the world’s poorest countries, leaving them with debt burdens that are larger than they have been in nearly three decades. The market turmoil and the aftereffects of the global pandemic have pushed these countries deeper into poverty, reversing years of income gains and undermining their transition to cleaner energy, one of the rich world’s top development priorities.

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