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Amit Jain, senior energy specialist at the World Bank, expressed similar sentiments, calling for greater involvement from both the private and public sectors. “India requires $150 billion annually for green finance, but we’re currently receiving just $50 billion, half from the government and half from the private sector,” Jain pointed out. This imbalance in funding must be corrected if India is to make significant progress toward its renewable energy and climate goals.
The role of Multilateral Development Banks (MDBs) in bridging the climate finance gap was another focal point. Experts argued that MDBs need to evolve and focus on blended finance structures to attract private sector investment. “If we are looking for the private sector to come in a big way, particularly in emerging economies, MDBs should focus more on blended finance,” Kumar argued.
Amitabh Kant, India’s G20 Sherpa, also pitched for the need for stronger partnerships between governments, MDBs, and the private sector. “The challenge is that today’s world is confronted with multiple global crises, and protectionism is at its height. Despite this, India must drive its own agenda and focus on becoming a global leader in renewable energy,” said Kant.
As COP29 approaches, the stakes for India and the Global South are higher than ever. While the financial commitments made by developed nations have fallen short, India’s leadership role in shaping the global climate agenda remains critical. Ahluwalia’s advice to be pragmatic, combined with Parikh’s insistence on equitable climate finance and Kumar’s call for greater renewable energy investment, paints a complex but hopeful picture. India has the potential to lead, but it must strategically align its actions and expectations at COP29 and beyond.
In Kant’s words, “India must be clear about its objective: by 2030, we must aim to become an exporter of clean energy rather than an importer of fossil fuels. This vision will shape our climate agenda for years to come.” COP29 might not offer all the solutions, but it will certainly set the stage for the Global South’s next steps in the global climate battle.
India’s climate financing gap is substantial
1. As per estimates in India’s updated NDCs, the country needs a substantial amount of climate finance in order of tens of trillions of dollars by 2050 to achieve its ambitious sustainability targets.
2. From 2026-2030, India will require annual clean energy investments in the range of $253- $263 billion (rising to $325-$355 billion over 2031-2035) to align with sustainable development and climate goals.
3. Other estimates, which take into account the investment gap (the difference between what is required and what could reasonably be made available from conventional sources) to achieve net-zero by 2070, suggest that the total funds required amount to $10.1 trillion.
4. However, the current investment available for climate action in India is only $44 billion per year, as per Climate Policy Initiative report.
This week in Baku
1. The COP29 Presidency of Azerbaijan will be hosting a series of critical climate negotiations in Baku this week across both technical and political tracks of the UN talks.
2. Pre-COP” week began with progress on the technical work needed to agree on and establish Article 6 at COP29, the basis for implementing effective carbon markets, which could provide up to $250 billion of annual efficiency savings by 2030 in the identification and rollout of climate mitigation projects.
3. The COP29 Presidency has appointed ministerial and high-level pairs across key areas including the New Collective Quantified Goal (NCQG) for climate finance, Article 6, adaptation, mitigation, and transparency.
4. The High-Level Ministerial Dialogue on the NCQG and political engagements around this week’s meeting serve as crucial junctures where technical expertise and political will converge.
5. The NCQG remains the top negotiating priority for the COP29 Presidency. It is essential for enabling climate action, particularly for developing nations, and must address both the urgency and scale of the problem.