Debt for Climate reaction to Compromiso de Sevilla

Debt for Climate rejects the final draft of Compromiso de Sevilla, adopted in New York on June 17th 2025, preceding the 4th Financing for Development Conference that will take place in Seville, Spain from 30th June - 3rd July. The process evidenced what we have long been denouncing: UN spaces are not the spaces for transformative change to happen, especially amid times where fascist regimes continue to govern former colonial states in the Global North.

1. Debt swaps: the Compromiso de Sevilla supports scaling up debt swaps by simplifying their design. But these are dangerous false solutions. They do not solve the debt crisis, they threaten sovereignty, lack transparency, and legitimize illegitimate debts. We sincerely regret that G77 countries (group of Global South governments) welcomed this false solution. Debt swaps are not an instrument to be ‘well-designed’, they divert attention from real anticolonial solutions such as debt cancellation.  In addition, swaps only apply to a tiny fraction of debt (expensive debt), so they offer only limited help and can even make future restructurings harder by creating complex, costly debt arrangements. We warn comrades around the world, especially from the Global South, to remain vigilant about debt swaps, and if such initiatives are presented to your government, they will contribute to greenwashing the colonial debt system, human rights violations and land-grabs of your territories 

2. Intergovernmental process at the United Nations with a view to make recommendations for closing gaps in debt architecture: The original demand from civil society organizations on debt was to initiate a UN Debt Convention, which would be a legally binding mechanism that aims to shift the decision-making of debt issues to the UN, instead of continuing having them at undemocratic spaces such as the G20. Colonial Global North powers negotiated in bad faith, weakening the commitment of this text to the point that there will be only an intergovernmental mechanism that will issue recommendations, which means, it is not legally binding. Despite weakening the text, the Global North countries decided to dissociate from this already watered down paragraph after all, while Global South countries, although disappointed, had to conform with what was left. This was a calculated move to protect the status quo of the debt system, which fuels neocolonial relationships between the Global North and the Global South.

3. Holding a dialogue of countries with the Paris Club and creditors (along with the International Monetary Fund, the World Bank, private creditors): How can we sit at the table to have a “dialogue” with undemocratic institutions such as the IMF and the World Bank, who are responsible for massive human and nature suffering thanks to their structural adjustment programs? This is also another false solution that will not bring any good to Global South countries, and having this proposal included in the text just reflects that the colonial powers are unwilling to give up power.

This was a UN led multi-government negotiation that took place over the last 9 months, in the lead up to Seville. Delegates gathered in New York to negotiate regularly, with the last round of negotiations being held during the last weekend. The text was finally adopted by consensus, which could be perceived as a win in diplomatic terms, even if some countries decided to dissociate from specific paragraphs. For example, the US withdrew from the process completely and will not attend the FfD4 conference. The UN, unfortunately, has proven unable to stop genocides from occurring, so we did not have expectations that the FfD process would deliver radical change from the outset. However, it remains a space that cannot be left to colonizers to impose their agenda unchallenged. They must know that there are social movements present that will raise their voices and demand justice. 

Given this outcome, we believe it is crucial to bring radical alternatives to Sevilla, based on social movements demands that work to overthrow the capitalist, colonialist and imperialist system. Regarding debt, Debt for Climate proposes to conduct citizen debt audits, which is a mechanism to evaluate the public debt and identify illegitimate, odious and illegal debts, to then reject their payments. This can be led by social movements and does not depend on the political will of creditors from Global North countries (unlike UN processes). 

We don’t owe them anything, they owe us everything!

DON’T SWAP YOUR DEBTS, AUDIT THEM!