Cancel unsustainable bilateral debts

AI summary

Petitioners ask the Government of Canada to cancel unsustainable Canadian bilateral debts, pursue a UN sovereign-debt framework and reform finance, and raise bilateral climate grants to at least 60% for adaptation and loss-and-damage. The government responds that it supports debt sustainability, includes climate-resilient debt clauses in new sovereign loans and has launched a crisis-resilience forum.

AI summaries describe petitioners’ requests and claims. Consult the official record for the full text.

Official petition

Petition to the House of Commons and the Government of Canada: Whereas more than 3.4 billion people live in countries that are spending more on debt payments than on health or education; and for heavily indebted countries, public debt has grown so large that repayment is impossible, burdening future generations. Whereas more than 60,000 Canadians, as part of the Jubilee 2025 - Turn Debt into Hope campaign, have called on public, private and multilateral creditors, along with political leaders, to: stop the debt crisis now by cancelling and remedying unjust and unsustainable debts without economic policy conditions; to prevent debt crises from happening again by addressing their root causes, reforming the global financial system to prioritize people and planet; and to establish a permanent, transparent, binding and comprehensive debt framework within the United Nations. Whereas lower income countries are currently spending twelve times more on debt repayments than on addressing the impact of the climate crisis and the link between high debt burdens and worsening climate impacts is perpetuating a vicious cycle. Simultaneously, the lack of grant-based funding to help countries adapt is forcing lower income countries even deeper into debt. We, the undersigned citizens and residents of Canada, call upon the House of Commons and the Government of Canada to: • Initiate a review of all bilateral debts held by Canada to identify those that have become unsustainable. Where such debts are identified, they must be canceled without conditions. • Advocate in multilateral fora, like the G7, G20, IMF and World Bank, for global financial reform and for a UN Framework Convention on Sovereign Debt. • Increase the grants portion of Canada's bilateral climate finance to at least 60 percent and ensure that only grants are used to address adaptation and loss and damage.

Government response

Response by the Minister of Finance and National Revenue Signed by The Honourable François-Philippe Champagne Canada considers action on debt sustainability to be fundamental to the macroeconomic health of developing countries and to global economic stability. For decades, Canada has worked closely with other Paris Club members to address sovereign debt challenges, supported coordinated debt restructurings under the G20 Common Framework for Debt Treatments, and promoted responsible lending and borrowing practices. Canada has also championed use of crisis-resilient financing instruments, such as Climate-Resilient Debt Clauses (CRDCs), which provide countries with built-in flexibility to manage external shocks. Since 2023, Canada has committed to including CRDCs in all new sovereign loans and has already done so for South Africa, Guyana, Ecuador, and Moldova. Building on these efforts, Canada’s 2025 G7 Presidency launched the Forum for Crisis Resilience in partnership with the World Bank Group, a three-year initiative aimed at strengthening crisis preparedness and financial resilience in small and vulnerable countries, as these issues contribute to difficult debt situations. The Forum is supported by a CAD 12 million contribution to promote awareness and uptake of innovative financing instruments. In addition, as part of our G7 Presidency, Canada also provided CAD 2 million to advance the World Bank Group’s debt transparency agenda by supporting capacity building efforts in vulnerable regions, particularly in Africa, Latin America, and the Caribbean, through practical training and guidance. Climate finance is an important facet of Canada’s support to developing countries. The Spring Economic Update 2026 announced resources for Global Affairs Canada, Environment and Climate Change Canada, and FinDev Canada to continuing delivering climate-related assistance. The government’s goal is for Canada to deliver over $13 billion in climate-related support to developing countries over the next five years from all sources. Further information on allocation by instrument and priority area will be provided by relevant departments in due course.