November 17, 2024
India at COP 29 Summit in Baku: Climate finance are not “investment goals” #IndiaFinance

India at COP 29 Summit in Baku: Climate finance are not “investment goals” #IndiaFinance

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India’s intervention reiterated that the developed countries need to commit to providing and mobilising at least $1.3 trillion every year till 2030, through grants, concessional finance, and non-debt-inducing support.

India’s intervention reiterated that the developed countries need to commit to providing and mobilising at least $1.3 trillion every year till 2030, through grants, concessional finance, and non-debt-inducing support.
| Photo Credit: Getty Images

At the ongoing COP29 negotiations in Baku, India stated that climate finance — the money that’s necessary to incentivise and facilitate developing countries’ adoption of renewable energy sources over fossil fuels — should not be seen as “investment goals” by developed countries.

“Climate finance cannot be changed into an investment goal when it is a unidirectional provision and mobilisation goal from the developed to the developing countries. The Paris Agreement is clear on who is to provide and mobilise the climate finance — it is the developed countries,” said a statement by India’s lead negotiator, Naresh Pal Gangwar, on late Thursday (November 14, 2024). The statement was formally made public by the Union Environment Ministry on Friday (November 15, 2024). Currently, $5-6.8 trillion worth of climate finance until 2030 is being mooted at Baku.

Several technical issues are being deliberated upon at Baku. The key moment, however, that the hundreds of negotiators are working upon is the New Collective Quantified Goal on Climate Finance (NCQG). This is an estimate of the money that developing countries will collectively require from developed countries to adapt to climate change and shift to renewable sources without compromising on developmental needs.

The existing estimate, agreed upon in 2009, was to mobilise and deliver $100 billion annually from 2020-2025 but was fulfilled — not to universal agreement — only in 2022. However, the countries also collectively decided, in 2021, to increase this, come up with a new number, and make it operational by 2025. This is why the Baku COP is expected to deliver on a new number to make the COP a success.

Intervening on behalf of a collective called ‘Like-Minded Developing Countries (LMDCs), at the High-Level Ministerial on Climate Finance in Baku, India, highlighted that the impacts of climate change were increasingly becoming evident in the form of unfolding disasters.

“We are at a crucial juncture in our fight against climate change. What we decide here will enable all of us, particularly those in the Global South, to not only take ambitious mitigation action but also adapt. This CoP is historic in this context,” said Mr. Gangwar.

The statement firmly asserted that, recognising the historical responsibilities and differences in capacities, the UNFCCC and its Paris Agreement envisage a global response to climate change, adhering to the principles of equity and common but differentiated responsibilities and respective capacities. “The context of different national circumstances, sustainable development goals, and poverty eradication, particularly with respect to the Global South, should not be lost sight of. These principles must form the basis for a strong outcome on the New Collective Quantified Goal at CoP29,” it added.

India’s intervention reiterated that the developed countries need to commit to providing and mobilising at least $1.3 trillion every year till 2030, through grants, concessional finance, and non-debt-inducing support that cater to the evolving needs and priorities of developing countries without subjecting them to growth-inhibiting constitutionalities in the provision of finance.

The statement recognised that such a scenario is vital for advancing towards COP30, where all parties are expected to submit their updated Nationally Determined Contributions (NDCs). “Achieving this outcome will set a solid foundation for meaningful progress in our global climate efforts,” it noted.

India strongly laid down the point that bringing in the elements of any new goal that are outside the mandate of the convention and its Paris Agreement is unacceptable. The statement ruled out any scope for re-negotiation of the Paris Agreement and its provisions.

Asserting that “transparency and trust” are the backbones of any multilateral process, India noted that there is no understanding of what comprises climate finance. Developed countries’ performance regarding their existing financial and technological commitments has been disappointing.

India’s intervention stated that a clear definition of climate finance, in line with the provisions of UNFCCC and its Paris Agreements, will promote transparency and is vital for furthering constructive deliberations and building trust. In this regard, the statement said, “We take note of the work carried out by the Standing Committee on Finance; however, there is need to further work in arriving at a meaningful definition of climate finance”.

The intervention called out the developed countries and stated that they committed to jointly mobilise $100 billion per year by 2020, a deadline extended to 2025. While the $100 billion target is already inadequate compared to the actual requirements of developing countries, the real amount mobilised has been even less encouraging.

“The $100 billion was committed in 2009, 15 years ago. We have a common time frame for expressing ambitions every five years. There is a similar need in terms of climate finance. We are very hopeful that developed countries will realise their responsibility to enable enhanced ambitions and make this CoP29 a success,” the statement said.

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