Use green transition funds to achieve health for all, suggest experts

Experts argue that the green energy transition can be harnessed to achieve universal health coverage (UHC) in low- and middle-income nations. By setting aside a dedicated portion of funds derived from cutting fossil fuel subsidies, implementing carbon taxes, and capturing mineral royalties, this transition could generate the necessary financial resources.

In 2024 alone, $733 billion was spent on fossil fuel subsidies worldwide, dwarfing the estimated $20 to $53 billion annual financing gap needed to attain UHC in these countries. Reductions in subsidies could free up significant funds for domestic public health initiatives. Moreover, carbon pricing and royalties from critical minerals like lithium and cobalt also present substantial revenue streams.

However, it's crucial that these new funds reach health budgets instead of being siphoned off into general revenue or undermined by tax avoidance and evasion. Past reforms in Indonesia and Brazil, while ambitious, failed to translate into sustained health care investments. Therefore, health ministries, civil society groups, and professional health organizations must actively shape carbon pricing rules and royalty frameworks to ensure a dedicated share of revenue reaches health programs.

Given that green transition revenues tend to funnel to wealthier nations, while UHC financing gaps are concentrated in lower-income countries, international mechanisms like debt-for-health swaps are vital to ensure equity. The green transition offers a golden opportunity to finance UHC in low- and middle-income nations, making it imperative that this chance is not squandered, according to experts.