Global South faces financial barriers to fossil-fuel exit (socialeurope.eu)

• High cost of capital premiums in developing countries block renewable deployment.
• Fossil-fuel revenues are essential for many governments to avoid fiscal crises.
• JETPs offer loans, not grants, increasing debt burdens.
• Critical mineral extraction risks new forms of dependency.

"Renewable energy is cost-competitive, but developing countries pay a premium due to high borrowing costs. Many remain dependent on fossil fuels for fiscal survival. Just Energy Transition Partnerships are mostly loans, raising debt concerns. The global financial system rewards extraction, hindering an equitable transition."