Tackling unsustainable debt is essential for enabling a just transition and building resilience, while also promoting global stability and strengthening the global economic safety net.
For the 2025 Jubilee, Caritas launched the global campaign “Turn Debt into Hope”, which seeks to mobilise international support for the growing debt crisis.
25 years ago, the 2000 Jubilee Campaign championed the cancellation of unsustainable debt for poor countries, leading to the acceleration of the implementation of the Heavily Indebted Poor Countries Initiative (HIPC). The 2025 campaign strives to rekindle the spirit and ambition for a more just and compassionate world and it highlights how the current economic and environmental crises are deeply intertwined.
A Global Petition for Change
Central to the “Turn Debt into Hope” campaign is a global petition that will be presented at international summits, including the G7 meetings in Canada, the G20 meetings in South Africa, and COP30 in Brazil. The message to global leaders is: economic and environmental resilience requires decisive, coordinated action on debt.
Why Debt Matters for Climate and Development?
Debt is a barrier to achieving the climate goals and sustainable development. Many middle- and lower-income countries are caught in a vicious cycle of unsustainable debt, exacerbated by crises like the COVID-19 pandemic, geopolitical tensions, climate change, and rising interest rates. According to the latest World Bank international debt report, in 2023 developing countries spent a record $1.4 trillion servicing foreign debt, and their external debt reached $8.8 trillion.
As debt servicing consumes an increasing share of national budgets, governments are left with limited fiscal space to invest in critical areas such as healthcare, education, and infrastructure. According to UNCTAD, 3.3 billion people are living in countries that spend more on interest payments than on education or health. This financial strain is compounded by the debt-climate nexus, where high debt levels restrict investments in climate adaptation and mitigation, while escalating climate-related disasters force countries to borrow further for recovery, perpetuating a “debt-climate spiral”. Additionally, dependence on fossil fuel exports to meet foreign debt obligations exacerbates the problem, limiting the fiscal flexibility required for sustainable development and energy transition.
Core Demands of the Campaign
- Stop the debt crisis now by cancelling and remedying unjust and unsustainable debts, without economic policy conditions.
- Prevent debt crises from happening again by addressing their root causes, reforming the global financial system to prioritise people and the planet.
- Establish a permanent, transparent, binding and comprehensive debt framework within the United Nations.
- End oil and gas expansion and break the debt-fossil fuel nexus.
For billions of people around the world, resolving the debt crisis is a matter of survival. Addressing the debt crisis is not only an economic necessity but also a strategic opportunity. Unlocking resources currently tied to debt servicing can catalyze progress on climate goals, enhance public investment, and promote long-term stability.
ECCO has chosen to endorse this campaign to join a collective effort to reshape the global financial landscape, ensuring it is more responsive to the needs of a rapidly changing world.
Photo by engin akyurt
