Lula Proposes New Climate Financial Order
Luiz Inácio Lula da Silva, President of Brazil, openly challenged the global financial architecture during the 10th meeting of the New Development Bank (NDB), which began this Thursday. In his speech, he denounced the hypocrisy of developed countries in the face of the climate crisis and defended the BRICS model as a path to emancipation for the Global South.
In the convention center's halls, a relentless diagnosis was made: the international financial system continues to strangle the most vulnerable countries. Lula da Silva pointed to the $900 billion in foreign debt owed to African nations as a form of modern-day handcuffs.
The interest charged often exceeds the investment capacity of these countries, preventing any real possibility of sustainable development, making these countries unable to build basic infrastructure such as schools and hospitals, condemning successive generations to underdevelopment.
Lula drew a contrast between the empty promises of wealthy nations and the concrete actions promoted by the BRICS bank. While the Global North accumulates climate debts it refuses to repay, the NDB finances clean energy projects, often in local currencies—a gesture of breaking with the hegemony of the dollar.
More than 31% of projects already dispense with the dollar in their contracts, opting instead for national currencies. This monetary autonomy strengthens the economic sovereignty of member countries and represents a tangible alternative to the conditional model of traditional financial institutions.
The climate crisis, Lula noted, requires urgent support mechanisms, not slow, bureaucratic, and obsolete systems. He also recalled the $100 billion annual pledge made in 2009 by the richest nations—a promise systematically broken.
“The NDB emerges as an innovative instrument to fill this historical gap”.
He stated, defending the creation of an international financing system focused on human development and not austerity.
Ethical Bankruptcy
Lula da Silva advocated for a profound reform of the international financial architecture and criticized the slow pace at which rich countries have channeled the resources promised to address the climate crisis.
Alongside the president of the BRICS Development Bank (NDB), Dilma Rousseff, Lula highlighted the strategic role of the institution created by the BRICS and reinforced the need to create new financing mechanisms without conditionalities.
“Our bank is more than just a big bank for emerging countries.”
“It is proof that a reformed financial architecture is viable and that a new, fairer development model is possible”, he said.
Lula welcomed the growth of the NDB since its founding in 2014 at the BRICS summit held in Fortaleza and highlighted the interest shown by other countries in joining the institution — which reinforces the bank's credibility as an inclusive and effective alternative to the traditional financial system.
“The NDB finances projects aligned with national priorities, without imposing conditions.”
“What’s more, 31% of these projects are already executed in local currencies, which reinforces the sovereignty of member countries.”, pointed out.
Since its inception, the bank has approved more than 120 projects, totaling approximately US$40 billion, in areas such as clean energy, transportation, water supply, and environmental protection. In Brazil, more than 20 projects have already been approved, totaling over US$3,5 billion.
Lula da Silva also highlighted the NDB's rapid response to the floods that recently devastated the state of Rio Grande do Sul, calling it an example of the institution's agility in times of crisis. He added that the bank also plays a key role in the digital transition, investing in technologies in the health, education, transportation, and infrastructure sectors.
He also mentioned the expectation that the NDB will finance a feasibility study for the installation of an underwater data cable between the BRICS countries, in order to strengthen the digital sovereignty of their members.
BRICS Solution
During his speech, Lula da Silva harshly criticized the global financial system, which, he claimed, imposes austerity policies on poor countries while the world continues to spend billions on weapons.
He also recalled the commitment made by developed countries during COP15 in 2009 to mobilize $100 billion per year to support the fight against climate change — funds that, to date, have not been effectively made available.
“What was 100 billion per year should now be 1,6 trillion.”
“Without this funding, it will be impossible to meet the goal of limiting global warming to 1,5°C.”
"So far, there is no other habitable planet. We have to take care of this one.".
Lula da Silva also criticized the burden of foreign debt on African countries and argued that institutions like the IMF and the World Bank need to be reformed to reflect the new geopolitical and climatic realities of the 21st century.
“It is unacceptable that the African continent owes $900 billion and that interest payments exceed its investment capacity.”, lamented.
In an emotional moment, the President evoked the situation in Haiti, which he described as “semi-destroyed”. He revealed that he had discussed with French President Emmanuel Macron the issue of the debt paid by Haiti to France in exchange for its independence.
“Haiti should be reimbursed $28 billion”, he said.
He also argued that international funding should not be viewed as charity, but rather as a legitimate development tool. Finally, he called on the NDB to take a leading role in creating new forms of funding, emphasizing that the logic of austerity only contributes to exacerbating social inequalities.
African Emergency
In the Congo forests, rangers receive less than $30 a month to protect the world's second-largest river basin. Lula da Silva contrasted this figure with the $10 million a day in subsidies to European oil companies. The debt math becomes obscene in the Sahel. Niger spends 42% of its budget on debt service while droughts devastate crops.
Whenever we talk about austerity, the poor get poorer and the rich get richer.”
“It is this reality that we need to change.”
“How can they adapt to the climate when the coffers are empty?”
Lula da Silva's proposal is simple: end austerity by immediately freezing interest rates for countries experiencing extreme water stress. In response, the NDB proposes that by 2026, 50% of new financing will be earmarked for Africa. Priority will be given to water projects and renewable energy.
The Brazilian President's intervention comes as the NDB seeks to expand its membership and consolidate its importance in the global financial landscape. The next decisive stage in the discussions on climate finance will be COP30, to be held this year in Belém, Pará—an event that Lula described as a historic opportunity for Brazil and the world.
Conclusion
The NBC asserts itself as an ethical and strategic counterweight to the current global financial architecture. Its expansion on the African continent represents a concrete opportunity to liberate economies suffocated by historical debts, many of which are rooted in colonial structures still active in new forms.
Enough declarations of intent: the climate emergency, geopolitical imbalance, and the burden of debt demand courageous decisions and immediate action. Lula da Silva was categorical: the time for excuses is over. The instruments of climate justice exist. All that's missing is the political courage to break with the logic of perpetual debt and conditional welfare.
What do you think of these climate finance proposals presented by Lula da Silva? Do you value our journalism? Don't hesitate to comment. Share your analysis in the comments, and if you enjoyed the article, share it and give it a like.
Picture: © 2025 Ricardo Stuckert
