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Yahoo
04-07-2025
- Business
- Yahoo
Civil society leaves UN development summit feeling unheard
By David Latona SEVILLE, Spain (Reuters) -When over 1,000 civil society representatives flocked to Seville this week for a U.N. conference on development financing their expectations were already low, but the four-day event left many frustrated and feeling their voices were stifled. The once-in-a-decade summit promised to marshall resources that could narrow the estimated $4.3 trillion financing gap needed to help developing countries overcome mounting debt distress, the ravages of climate change or structural inequality, among other hurdles. However, the world's richest governments have been slashing aid and bilateral lending while increasingly prioritising defence spending as geopolitical tensions escalate, raising doubts that the cautious optimism expressed by most officials in attendance was realistic. Several civil society organisations (CSOs) were critical of the measures outlined in a final document, the "Seville Commitment", which they said was watered down by wealthier nations unwilling to walk the talk. Others lambasted what they described as a private sector-first approach to development. Arthur Larok, secretary general of ActionAid, said Global South countries were "returning home empty-handed" while Global North governments did so "free from responsibility". Still, certain initiatives - such as an alliance to tax the super-rich or plans to slap new levies on premium and private-jet flying - were widely celebrated among CSOs. Their main complaint was a lack of access, with accusations ranging from difficulties obtaining accreditations to exclusion from key negotiations, prompting CSO delegates to hold a protest at the conference's venue on its final day. "We've witnessed an unprecedented wave of restrictions and lack of attention to the voice of civil society," Oyebisi Babatunde Oluseyi, executive director of the Nigeria Network of NGOs, told Reuters, adding a new mechanism was needed to insert their perspective into global decision-making. U.N. Deputy Secretary General Amina Mohammed acknowledged CSOs' grievances in Thursday's closing press briefing and said the U.N. would endeavour to "expand the space" for them. "The U.N. was built to defend human rights - if it cedes to the global trend of shrinking civic space, it'll undermine its legitimacy," said Hernan Saenz of Oxfam International. In a joint declaration on Sunday, the CSOs denounced the international financial system as unjust and called for its "complete overhaul". Despite the pervasive discontent, all CSO representatives interviewed by Reuters said they ultimately believed in the U.N. system. Hirotaka Koike, a board member at the Japan NGO Center for International Cooperation, said he did so because it was the only place where all countries were treated equally. "Yes, there are bureaucracies; yes, there are a lot of processes. But what else do we have?"
Hindustan Times
01-07-2025
- Business
- Hindustan Times
Spain to shift $1.9 billion in reserve assets to help developing countries
By David Latona Spain to shift $1.9 billion in reserve assets to help developing countries SEVILLE, Spain, - Spain will redirect an additional $1.9 billion in Special Drawing Rights to the International Monetary Fund as part of an effort to support developing countries, Economy Minister Carlos Cuerpo told Reuters on Tuesday. Speaking on the sidelines of a UN conference on development financing in Seville, Cuerpo said Spain has committed to shifting up to 50% of its SDRs, or over 5.5 billion euros , showcasing the country's dedication to contributing to global economic stability and development. SDRs are international reserve assets created by the IMF to supplement member countries' official reserves, providing liquidity to the global economy. They are allocated to member countries in proportion to their IMF quotas and can be exchanged among governments for freely usable currencies in times of need. "Spain will always be part of the solution, for example, with the commitment to rechannel most of our SDRs ... that would benefit developing countries," Cuerpo said. The additional funds will go into the IMF's Poverty Reduction and Growth Trust, which is used to provide concessional loans to poor countries. Spain's move aligns with broader efforts among donors to support countries in need, if with the notable absence of the United States after Washington refused to back the summit's plan of action hammered out over the last year. The pre-summit "outcomes" agreement included tripling multilateral lending capacity, debt relief, a push to boost tax-to-GDP ratios to at least 15%, and shifting the special IMF money to countries that need it most. This article was generated from an automated news agency feed without modifications to text.
Yahoo
01-07-2025
- Business
- Yahoo
Governments, multilateral lenders launch push for debt payment pauses
By David Latona SEVILLE, Spain (Reuters) -A number of wealthy creditor nations and multilateral lenders have launched an initiative that aims to give sovereign borrowers breathing space on debt payments in the event of a climate or humanitarian crisis, Spain announced on Tuesday. The Debt Suspension Clause Alliance was launched during a U.N. conference in Seville - a once in a decade meeting aimed at furthering development finance goals and guidelines. The initiative pushes for the systematic inclusion of clauses in new public and commercial lending that allow for a temporary suspension of debt payments in the face of extraordinary events, such as natural disasters, food crises or health emergencies. "The logic behind these clauses is simple but powerful: to create immediate fiscal space in times of greatest need, allowing countries to focus their resources on response and recovery without risking their solvency or ability to meet social spending," said economy minister Carlos Cuerpo. Speaking on the sidelines of the conference, Spain's Foreign Minister Jose Manuel Albares told Reuters that the suspension clause for debt repayments could also cover war. The governments of Canada, France and Britain were among the co-leaders of the initiative together with multilateral banks, including the Inter-American Development Bank, the European Investment Bank, the African Development Bank, the Development Bank of Latin America and the Caribbean and the Asian Development Bank. A number of multilateral lenders have already added such clauses in their lending - including inserting them retroactively in some existing loans. The Inter-American Development Bank said in the statement on Tuesday that adding climate-resilient debt clauses in sovereign loans had extended $3.2 billion in protection across several countries. It said it would expand this to more nations and broaden its scope. The European Investment Bank last year made climate-resilient debt clauses available to 70 developing countries. The World Bank - one of the biggest multilateral development lenders - has also broadened the scope of its Climate Resilient Debt Clauses for the most vulnerable countries in recent years.
Japan Today
28-06-2025
- Business
- Japan Today
U.N. bids to salvage global development summit after U.S. boycott
FILE PHOTO: The logo of the United Nations is seen in the General Assembly hall before heads of state begin to address the 76th Session of the U.N. General Assembly in New York City, U.S., September 21, 2021. REUTERS/Eduardo Munoz/Pool/File photo By David Latona and Marc Jones Scores of world leaders will be sweltering in the summer sun of southern Spain this week at a once-a-decade United Nations development financing summit aimed at curbing global poverty, disease and the worst-case threats of climate change. Despite the scorching temperatures, though, a major chill looms over the event - the decision early this month by the United States, traditionally the world's largest aid giver and key finance provider, not to show up. U.N. countries want to close a $4 trillion-a-year funding gap they now estimate prevents the developing world achieving the organization's Sustainable Development Goals that range from cutting infant death rates to minimizing global warming. Critics say the promises at the heart of the conference - called the "Seville Commitment" - are nowhere near bold enough. The measures, agreed by consensus after a year of tough negotiations, include tripling multilateral lending capacity, debt relief, a push to boost tax-to-GDP ratios to at least 15%, and shifting special IMF money to countries that need it most. The run-up, however, has been marred by the U.S. decision to withdraw over what it said was the crossing of a number of its red lines, including the push to triple development bank lending, change tax rules and the use of the term "gender" in summit wording. The European Union only joined the summit with reservations, particularly over how debt is discussed within the U.N. Speaking to reporters, U.N. Deputy Secretary-General Amina Mohammed described Washington's boycott as "regrettable", especially after its "catastrophic" recent aid cuts that she said had cost lives and livelihoods. Speaking alongside officials from summit host Spain and Zambia, which has helped organize it, she said the final outcome document agreed reflected both "ambition and realism" and that the U.N. would try to re-engage the U.S. afterwards. Remy Rioux, chief executive officer of the French Development Agency, said Washington's withdrawal had not been a total surprise given Donald Trump's views. The hope is that agreements will allow bolder action at the U.N. climate talks in Brazil in November. "We will push for the new framework... (and) its operationalization from Seville to Belem," he added, referring to the Brazilian city that will host COP30. AID IN DECLINE Other measures to be announced include multilateral lenders automatically giving vulnerable countries the option to insert repayment break clauses into their loans in case of hurricane, drought or flood. Another buzz phrase will be a "Global SDR playbook" - a plan where the wealthiest countries rechannel the IMF's reserve-like Special Draw Rights they hold to the multilateral banks, who then leverage them as capital in order to lend more. Campaigners warn that it will fall far short of what is needed, especially as more than 130 countries now face critically high debt levels and many spend more on repayments than on health or education. Aid and support from rich countries, who themselves have rising debts, is dropping too. In March, the U.S. slashed more than 80% of programs at its USAID agency following federal budget cuts spearheaded by billionaire Elon Musk. Britain, France, Germany, the Netherlands and Sweden have all made cuts in recent years too. The OECD projects a 9–17% drop in net official development assistance (ODA) in 2025, following a 9% decline in 2024. It looks set to hit the poorest countries hardest: bilateral ODA to least developed countries and sub-Saharan Africa may fall by 13-25% and 16-28% respectively, the OECD estimates, and health funding could drop by up to 60% from its 2022 peak. So what would be a good outcome in Seville, especially given the U.S. pull-out? "We should make sure we are not backtracking at this point," said Orville Grey at the International Institute for Sustainable Development, referring to funding commitments. "We should at least remain stable." © Thomson Reuters 2025.
Yahoo
02-05-2025
- Business
- Yahoo
Spain suffered multiple power incidents in the build up to full blackout
By David Latona, Emma Pinedo, Pietro Lombardi MADRID (Reuters) -Spain suffered several power glitches and industry officials sounded repeated warnings about the instability of its power grid in the build up to its catastrophic blackout on Monday. The government has ordered several investigations into the blackout. Industry experts say that whatever the cause, the mass outage and earlier smaller incidents indicate the Spanish power grid faces challenges amid the boom of renewables. A surplus of energy supply can disrupt power grids in the same way as a deficit, and grid operators must maintain balance. In the week before the blackout, Spain saw several power surges and cuts. A power cut disrupted railway signals and stranded at least 10 high-speed trains near Madrid on April 22. Transport Minister Oscar Puente said excessive voltage in the power network had triggered disconnections to protect substations. On the same day, Repsol's Cartagena refinery saw its operations disrupted by power supply problems. The grid suffered from significant instability in the days before the blackout, said Antonio Turiel, a senior researcher with the Spanish National Research Council. Spain's grid operator REE did not reply to a request for comment. Spain's energy ministry declined to comment. Spain has ordered inquiries involving government, security agencies and technical experts. A high court judge has launched a probe into whether a cyber attack was to blame. The Spanish power grid had been on a knife edge for several days due to power system imbalances, said Carlos Cagigal, an energy expert who advises private firms on renewable and industrial projects. Prime Minister Pedro Sanchez and power grid operator REE's chief Beatriz Corredor have both said record levels of renewable energy were not to blame for Monday's blackout. But REE and Europe's power grid lobby ENTSO-E had both previously warned that the rapid rise of power generation from renewables could destabilise the grid. Small renewable generators were putting extra pressure on the infrastructure, REE said in a 2024 report, and REE's parent company Redeia said in February the grid lacked information from smaller plants to be able to operate in real time. INCREASING RISK OF POWER CUTS The risk of power cuts is rising, Redeia warned because the closure of coal, gas-fired and nuclear plants reduces the grid's balancing capacities. "This could increase the risk of operational incidents that could affect supply and the company's reputation," the company said. Solar farms generate direct current (DC) power which doesn't have a frequency like alternating current (AC) power generated by conventional plants. DC power needs to be converted to AC in inverters to be transmitted via grids. If solar generation drops, the grid requires backstop AC power to prevent frequency dropping below dangerous levels after which most power contributors disconnect from the grid. "Shutting down the nuclear plants may put electricity supply at risk," REE's former chair Jordi Sevilla told Spanish news website Voxpopuli in January. Spain plans to shut down all seven nuclear reactors by 2035. The planned closure of two nuclear reactors at southwestern Spain's Almaraz plant, starting in 2027, will increase the risks of blackouts, European power lobby ENTSO-E said in April. REE responded to ENTSO-E by saying there was no risk of a blackout and it could guarantee stable energy supply. Less than a week later, Almaraz temporarily shut down the two units citing abundant wind energy supply as making operations uneconomic. One unit was still offline on Monday. The blackout across Spain and Portugal knocked out communications and transport systems, shut down industry and offices and brought commerce to a virtual standstill. The blackout could have shaved 1.6 billion euros ($1.82 billion), or 0.1%, off GDP, Spain's business lobby estimated.
