Carlos Lopes, University of Cape Town

As we approach the global annual climate change conference, COP29, the need for increased public finance from the global north to address climate adaptation in Africa has become more urgent than ever.

However, framing the finance debate solely around this need risks deepening mistrust and downplaying the scale of the challenge. The financial burden of addressing climate change, coupled with limited fiscal space, creates a precarious situation for many African countries. African countries bear no historical responsibility for causing the climate crisis. However, they rely heavily on external financing to solve climate change problems.

Unfortunately, much external climate finance comes from loans rather than grants. This only worsens Africa’s debt burden. There is also not nearly enough money being channelled to Africa to pay for climate change adaptation.

At COP29, African negotiators will undoubtedly focus on reducing dependence on debt, and improving access to finance. I’m an economist who specialises in climate change and governance, with a long background at the United Nations and the African Union. Without robust commitments from public financial institutions, Africa will continue to face the dual crises of climate vulnerability and debt.

African countries must use COP29 to tackle systemic biases that inflate risk perceptions, minimise African achievements and inflate its problems. These biases drive up borrowing costs, and worsen commodity dependence.

The climate finance gap

The African Development Bank has estimated that Africa needs between US$1.3 trillion and US$1.6 trillion in total climate financing every year between 2020 and 2030. This will enable African countries to meet their commitments to reduce greenhouse gas emissions, known as nationally determined contributions.

The Global Center for Adaptation estimates that Africa requires at least US$52.7 billion annually for adaptation every year until 2035. However, this figure could rise to US$106 billion. This is because data gaps allow for double counting of financial contributions. There is also very little transparency about the real amounts of climate finance being disbursed. Because nationally determined contributions are focused on mitigation, carbon depletion tends to be measured without accurate calculations of the amount of emissions that are captured, or carbon that is conserved.

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The United Nations Development Programme says that Africa’s nationally determined contributions mean the continent needs about US$2.8 trillion by 2030 for climate mitigation. However, Africa contributes only 4% of all greenhouse gas emissions currently. It needs funds for adaptation to adjust to climate change that is already changing the lives of many, rather than for mitigation.

But only about half of the climate finance received by Africa in 2022 was for adaptation (US$4.6 billion). The rest of the climate finance addressed mitigation or a mix of both, in line with the global north’s agenda.

Worse still, 64.5% of adaptation financing came from loans, which need to be repaid. This will increase the financial strain on African nations.

Loans versus grants for climate change adaptation

Multilateral financial institutions such as the International Monetary Fund (IMF) and the World Bank, and the Organisation for Economic Co-operation and Development through their Development Assistance Committee, handed out US$8.33 billion to Africa in 2022 for climate action. But most of this – US$5.4 billion – was loans. Only US$2.9 billion was grants, with a small fraction in equity investments.

These loans come with lower-than-market rates or extended repayment terms. But they still add to Africa’s external debt, which reached US$1.12 trillion in 2022. African countries’ debt repayments are twice what they get as climate finance.

The United Nations Framework Convention on Climate Change says developed countries are responsible for financing climate adaptation in vulnerable regions. But loans that create a huge debt burden only enrich global financial institutions at the expense of African countries.

The effects of climate change are causing unprecedented floods, drought and other disasters across Africa. Yet it is becoming more difficult for African countries to access the climate finance they need to adapt to a warming world.

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Why is the situation worsening?

First, access to climate finance remains a bureaucratic nightmare with complex application processes. There also needs to be more transparency in fund allocation. The recently established Loss and Damage Fund could assist. It is meant to channel money to countries worst affected by climate change to pay for the damage caused.

Second, the focus on reforming Bretton Woods institutions and development finance institutions is shifting attention away from the obligations developed countries have signed up for. This distracts developing nations from making reforms in trade, taxation and financial regulations that could drive more meaningful results.

Third, there is a lack of liquidity (access to fresh money) needed to propel investment or allow countries to bridge their budget deficits. African countries are forced to juggle paying for healthcare, education and infrastructure development with paying back debt. Some spend more on debt repayments than healthcare.

Increased tax efficiency and domestic savings, such as the savings maintained by pension funds, could be used. This should be the priority while the fight for better international conditions continues.

Fourth, the distinction between development finance and climate finance is becoming an impediment to progress. The conversation should move away from getting African countries to prioritise greenhouse gas emission reductions at the expense of other development priorities. Climate action is under-implemented and underfunded. The focus must be on excessive dependency on aid and rather promote market incentives to encourage the private sector to invest in climate adaptation in Africa.

Fifth, African negotiators must address the structural barriers that limit access to finance. For example, biased risk perceptions by credit rating agencies prevent African countries from securing finance. Restrictive prudential rules from the Bank for International Settlements intended to preserve international financial system integrity have proven unfavourable to the transformation of the African economies.

Sixth, Africa should make use of regional climate finance platforms and set up cross-border climate change adaptation projects that benefit more than one country.

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This will allow Africa to pool resources, coordinate demands and make it easier to negotiate better terms for climate finance. Just energy transition partnerships create an opportunity for countries to secure renewable energy funding for the transition from fossil fuel. Success will depend on effective coordination and regional solidarity in international climate negotiations.

Seventh, African countries have strong potential to use carbon markets to finance climate initiatives, provided they have control over them. Nature-based solutions can go hand in hand with reforestation, sustainable land management or conservation, while generating carbon credits. These are additional funding opportunities for climate adaptation efforts in Africa.

This moment demands bold leadership and a united front to rewrite the rules. African countries must secure the commitments and resources at COP29 that are needed to build a sustainable future.

Carlos Lopes, Professor at the Nelson Mandela School of Public Governance, University of Cape Town

This article is republished from The Conversation under a Creative Commons license. Read the original article.

https://stmdailynews.com/stories-this-moment

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Sara Harmouch, American University

The deadly Jan. 1, 2025, attack in New Orleans serves as a reminder of the persistent threat to the U.S. from individuals inspired by extremist Islamist groups.

While the investigation is still ongoing, some details about the suspect have been released. Authorities say Shamsud-Din Jabbar, a U.S. Army veteran, was behind the assault in which a truck was driven into a dense crowd in New Orleans’ French Quarter a few hours after midnight, killing at least 15 people and injuring dozens more. Jabbar, who died in a shoot-out with police, had pledged loyalty to the Islamic State group in online videos posted on Dec. 31, according to the FBI.

It represents the first major assault on an American city by an individual purportedly influenced by the Islamic State group, or one of its affiliates, since a 2017 truck assault in New York City that killed eight.

The New Orleans attack, like that earlier incident, underscores an important point: While the Islamic State group’s territorial caliphate – the area in Syria and Iraq in which it assumed both political and religious authority and sought to enforce its interpretation of Islamic law – has been dismantled, the group’s ability to inspire acts of terror on U.S. soil through online propaganda and ideological influence remains alarmingly potent.

As a terrorism expert and a scholar specializing in radical Islamist militant groups, I believe the case of Jabbar – an American soldier who was radicalized in the U.S. – echoes similar lone wolf attacks in the West over the past decade.

With lost territory in the Middle East, the Islamic State group has sought to exploit personal grievances, mental health struggles and ideological vulnerabilities, transforming isolated individuals in the West into deadly instruments of violence.

An attack inspired by the Islamic State

The New Year’s Day attack took place in New Orleans’ famous French Quarter. At about 3:15 a.m., Jabbar plowed his truck into a dense crowd along the popular Bourbon Street.

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In the immediate aftermath, investigators discovered a black banner in his vehicle – the flag used by many Islamist militant groups, including the Islamic State.

While the Islamic State has not yet officially claimed the attack on any of its social media platforms, subsequent reviews of Jabbar’s online activity revealed videos posted just hours before the incident, in which he pledged allegiance to the group. On Jan. 2, Christopher Raia of the FBI’s counterterrorism division said Jabbar was “100% inspired by ISIS,” using an alternative name for the group.

Jabbar’s background adds complexity to the narrative. A 42-year-old veteran, he had no prior known links to extremist networks, according to the FBI, underscoring the challenge posed by self-radicalized individuals who operate outside the scope of traditional terrorist cells.

At this early stage of the investigation, it appears the attack was planned independently, driven by an ideological alignment with the Islamic State group rather than at the direction of any of its leaders. This highlights the decentralized and unpredictable nature of the current terrorist threat landscape.

The growing threat of lone actor attacks

At the height of its power in 2014-2015, the Islamic State group controlled significant territory across Syria and Iraq, establishing a self-declared caliphate. While this physical caliphate was dismantled by 2019, following sustained efforts by the U.S.-led Global Coalition to Defeat the Islamic State, the group continues to operate, conduct and inspire attacks.

Lone wolf attacks, inspired by Islamic State group propaganda but lacking direct operational support, have become the hallmark of the post-caliphate era.

By inspiring individuals to carry out attacks independently, the Islamic State group aims to create an atmosphere of fear and instability, demonstrating its global influence despite lacking a physical caliphate.

It has actively sought to radicalize and mobilize individuals in the U.S. through digital platforms, spreading violent narratives and offering tactical guidance to potential attackers.

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This strategy allows the group to maintain relevance and project strength despite its physical losses in the Middle East.

The New Orleans incident follows a pattern seen in previous attacks in the West — such as the 2016 Nice truck attack in France, the 2016 Berlin Christmas market attack and the 2017 London Bridge attack. In each case, individuals were motivated by the Islamic State group’s call to action, using readily available means – vehicles, knives or firearms – to inflict mass casualties.

This model of terrorism is not only low cost but also difficult for intelligence agencies to intercept, as it often lacks the logistical trail associated with larger, coordinated plots.

Ideological reach and online propaganda

A critical component of the Islamic State group’s continued influence is its sophisticated use of online platforms to spread propaganda.

Even after significant efforts by social media companies to dismantle extremist content, the Islamic State group, al-Qaida and their affiliates have adapted by migrating to encrypted messaging services, dark web forums and niche platforms.

These digital spaces enable extremist groups to distribute radical content, call for violence and foster a sense of global community among supporters.

Jabbar’s apparent radicalization is, I believe, likely to have been driven by such online materials – more will be known when the FBI is through investigating the many phones and laptops agents retrieved after the attack.

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Such online propaganda frequently blends religious rhetoric with narratives of personal empowerment and martyrdom. The psychological appeal of Islamic State group propaganda lies in its ability to offer disenfranchised individuals a sense of purpose, framing violence as a form of spiritual fulfillment and resistance against perceived oppression.

The case of Jabbar also raises broader questions about domestic radicalization within the United States.

Individuals like Jabbar – who are not part of any terrorist cell and seemingly have no prior known links to extremism – are often able to operate undetected until they commit acts of violence.

Islamist militant groups’ Western strategy

The Islamic State group’s broader strategy in inspiring lone actor attacks extends beyond mere acts of violence.

By inciting terror in Western nations, the group aims to polarize societies, foster anti-Muslim sentiment and provoke overreactions from governments – conditions that can fuel further radicalization and recruitment.

This cycle of violence and social division serves not just the Islamic State group, but other Islamist militant groups’ long-term objective of destabilizing the West and reinforcing its narrative of a civilizational clash between Islam and the West.

Attacks such as that in New Orleans serve as powerful propaganda tools, demonstrating that the Islamic State group’s ideology remains alive despite its territorial losses. Each successful attack amplifies the perception of the Islamic State group’s resolve, bolstering the morale of supporters and attracting new recruits.

The New Orleans attack is a sobering reminder that the influence of extremist Islamist groups extends far beyond the borders of the Middle East. As the Islamic State group and other radical militant groups evolve and adapt, the threat of lone wolf attacks looms over the U.S. and other nations.

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Sara Harmouch, Ph.D. candidate in Public Affairs, American University

This article is republished from The Conversation under a Creative Commons license. Read the original article.

STM Daily News is a vibrant news blog dedicated to sharing the brighter side of human experiences. Emphasizing positive, uplifting stories, the site focuses on delivering inspiring, informative, and well-researched content. With a commitment to accurate, fair, and responsible journalism, STM Daily News aims to foster a community of readers passionate about positive change and engaged in meaningful conversations. Join the movement and explore stories that celebrate the positive impacts shaping our world. https://stmdailynews.com/

In the ever-evolving world of online commerce, one story has sparked significant conversation and concern: a group of influential content creators has filed a class-action lawsuit against PayPal, alleging deceptive practices involving their Honey browser extension. This situation opens up a can of worms about the often ambiguous relationships between tech companies, influencers, and consumers. Let’s dive into what’s happening!

The Allegations: A Clash of Giants

The lawsuit, filed in San Jose U.S. District Court, accuses PayPal, a tech titan with a market valuation of $87 billion, of employing “deceitful and clandestine” methods that divert millions of dollars in commissions from influencers to themselves. Creators like Marques Brownlee and the world-renowned MrBeast are reportedly calling out PayPal for undermining their livelihoods through what they describe as “fraudulent business practices.”

Honey, which PayPal purchased for $4 billion in 2020, is marketed as a free coupon-finding extension that helps online shoppers snag the best deals. With around 17 million users relying on its services, Honey appears to be a shopper’s best friend. However, the lawsuit contends that while consumers might save, influencers could lose—massively.

How It Works: The Fine Print of Affiliate Marketing

For the uninitiated, content creators typically earn a commission through affiliate marketing. When a viewer clicks on an influencer’s unique link—presumably shared via social media—and makes a purchase, the influencer earns a commission. However, the lawsuit claims that when Honey is involved, that commission doesn’t always end up in the influencers’ pockets.

The core of the allegations lies in how Honey purportedly operates. If a viewer clicks an influencer’s link but uses Honey to search for discounts, the extension may divert the sale credit to PayPal, effectively robbing the influencer of their rightful cut. According to the lawsuit, this issue persists even if Honey fails to find any coupon codes and the transaction is completed anyway.

A Ripple Effect: Implications for E-Commerce

Legal expert Josh Sanford, representing the plaintiffs, expressed that although PayPal has contributed significantly to the growth of e-commerce, such practices could fundamentally erode trust between vendors and consumers. It raises essential questions about transparency and fairness in online transactions. If consumers can’t be sure who is benefitting from their online purchases, it could damage the fabric of the influencer economy.

In response, PayPal has publicly disputed the lawsuit’s claims, insisting Honey follows industry standards and practices, including last-click attribution, which is used by numerous brands. The company maintains that Honey provides genuine value for consumers seeking savings while insisting that they promote fair dealings.

Moving Forward: What Can Consumers Do?

As the legal battle heats up, many creators are advising their followers to uninstall the Honey extension. With reports suggesting that over 3 million users may have already jumped ship, some consumers are reconsidering the convenience of coupon-finding in light of allegations of unfair practices.

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While users may still benefit from Honey’s features, it’s essential to weigh whether the potential savings are worth the risk of undermining the very creators we love and support. While Honey hasn’t been found guilty yet, the weight of these allegations casts a long shadow over its reputation.

A Community Response

In light of this controversy, many in the online community are rallying around the affected creators. From YouTube videos urging viewers to uninstall Honey to discussions across social media platforms, influencers are coming together to ensure their voices—and the interests of their communities—are heard.

As this story unfolds, it not only shines a light on the potentially murky world of affiliate marketing but also highlights the power dynamics at play in the tech and creator economies. As consumers, we should remain vigilant, prioritize transparency, and support our favorite creators while they navigate these challenges.

Stay tuned as this story develops, and remember to check your browser extensions! You might just be helping your favorite influencer in your own small way.

Related Links:

Tom’s Guide: https://www.tomsguide.com/computing/software/honey-scandal-explained

Dexerto: https://www.dexerto.com/youtube/why-is-honey-getting-sued-legaleagle-class-action-paypal-lawsuit-explained-3021021

STM Daily News is a vibrant news blog dedicated to sharing the brighter side of human experiences. Emphasizing positive, uplifting stories, the site focuses on delivering inspiring, informative, and well-researched content. With a commitment to accurate, fair, and responsible journalism, STM Daily News aims to foster a community of readers passionate about positive change and engaged in meaningful conversations. Join the movement and explore stories that celebrate the positive impacts shaping our world.

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