Interest rate hike jeopardizes the globa • Table.Briefings

The G7 and experts are alarmed: Rising interest rates and capital flight jeopardize the urgently necessary energy transition in developing countries. High capital costs are slowing down the expansion of renewables. In Germany, too, low interest rates were not sufficiently utilized.

The G7 summit in Hiroshima, Japan, over the weekend, revealed a threat that has hardly made the headlines so far: The debt crisis in many developing and emerging countries also jeopardizes the plans for a global energy transition. Addressing the climate crisis and debt vulnerability „are interrelated and mutually reinforcing,“ the summit’s final document states.

Interest rate hike jeopardizes the global energy transition

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