According to the Institute of International Finance, global debt levels surged by $2.1 trillion in the first half of 2024, setting a new record of $312 trillion by the end of Q2. The rise was primarily attributed to increased borrowing by the US and China.

A significant portion of this borrowing is linked to the energy transition, which is expected to account for over one-third of the anticipated debt growth by 2050.

“This presents a significant challenge, as many governments are already allocating a growing share of their revenues to cover interest payments,” the report noted.