COP29: India, other developing countries demand fair climate finance commitments #IndiaFinance

The venue of the COP29 United Nations Climate Change Conference, in Baku, Azerbaijan. File
| Photo Credit: Reuters

India, as part of the Like-Minded Developing Countries bloc, stood firm in calling for equitable financial support from developed nations at the ongoing COP29 climate negotiations, multiple sources from the grouping said here.

Concerns were also raised that nearly 69 per cent of reported finance came in the form of loans adding burdens on the already vulnerable countries.

At the annual climate talks, India negotiates in key groupings such as the Like-Minded Developing Countries (LMDCs), G77 and China, and BASIC (Brazil, South Africa, India, and China), where it aligns with other developing nations to advocate for climate finance, equity, and technology transfer.

On Tuesday (November 13, 2024), G77 and China – the largest bloc representing around 130 countries at the U.N. climate talks – rejected the draft text of a framework for negotiating a new climate finance goal.

The New Collective Quantified Goal (NCQG) is the central issue at this year’s climate summit, the 29th Conference of Parties (COP29) to the United Nations Framework Convention on Climate Change (UNFCCC) collectively negotiating and working to keep global greenhouse gases’ emissions under check.

During the negotiations, the LMDCs emphasised the principle of “common but differentiated responsibilities” (CBDR) to address the pressing financial gaps hindering effective climate action.

In the discussions centred on long-term climate finance, the LMDCs, alongside the African Group and the Arab Group, questioned the accountability of developed nations in reaching the USD 100 billion annual climate finance goal set years ago, which remains contentious.

According to the LMDCs, meeting this financial commitment and establishing a clear accounting methodology are crucial steps in building trust among parties.

Concerns were raised that nearly 69 per cent of reported finance came in the form of loans, adding burdens rather than alleviating them, according to a negotiator from the LMDC grouping.

Furthermore, the LMDCs voiced strong reservations against new financing principles that might impose stringent investment goals, which they argue, would favour countries with established investment infrastructure, another negotiator added.

The grouping argued that such measures could inadvertently marginalise nations that lack access to substantial foreign investment, particularly impacting smaller economies with limited resources, multiple negotiators from the grouping told PTI.

This stance, reinforced by India and other LMDC members, underscores a broader push at COP29 for sustainable climate finance that ensures accessibility for all developing nations.

The LMDCs continued to press for a multilaterally agreed definition of climate finance, pushing for consistency and transparency in financial commitments.

Negotiations on this issue are expected to be rigorous, with the LMDCs advocating for an approach that prioritises fairness and flexibility in meeting the climate needs of developing countries.