Climate and Us | Reiterating the need for climate finance - Hindustan Times
close_game
close_game

Climate and Us | Reiterating the need for climate finance

ByJayashree Nandi
Dec 06, 2021 03:37 PM IST

Without any real progress on finance, there will be no equity in climate negotiations. This could greatly jeopardise any mitigation efforts by developing countries

India’s stand on global climate action was clarified last week in replies to several questions raised in the Rajya Sabha on the outcome of the Glasgow Climate Change Conference (COP26).

In 2009, at COP15 in Copenhagen, developed country parties committed to a goal of mobilising jointly $100 billion a year by 2020 to address the needs of developing countries (Bloomberg) PREMIUM
In 2009, at COP15 in Copenhagen, developed country parties committed to a goal of mobilising jointly $100 billion a year by 2020 to address the needs of developing countries (Bloomberg)

The Centre has made a preliminary estimate that India will require at least $1 trillion by 2030 to implement its new climate goals announced in Glasgow. India also expects developed countries to provide climate finance of $1 trillion per year to the developing countries, the environment ministry informed Rajya Sabha last week.

Prime Minister (PM) Narendra Modi, as part of India’s national statement, announced on November 1 in Glasgow that: India’s non-fossil energy capacity will reach 500 GW by 2030; it will meet 50% of its energy requirements with renewable energy by 2030; it will reduce its total projected carbon emissions by one billion tonnes between now and 2030; India will reduce the carbon intensity of its economy by 45% by 2030, over 2005 levels; and it will, by 2070, achieve the target of net-zero emissions. PM Modi had also flagged that this ambitious action on the climate crisis will be impossible without adequate climate finance from developed nations.

“We all know this truth that the promises made till date regarding climate finance have proved to be hollow. While we all are raising our ambitions on climate action, the world ambitions on climate finance cannot remain the same as they were at the time of the Paris Agreement. Today, when India has resolved to move forward with a new commitment and a new energy, so in such times, the transfer of climate finance and low-cost climate technologies becomes more important. India expects developed countries to provide climate finance of $1 trillion at the earliest. Today it is necessary that as we track the progress made in climate mitigation, we should also track climate finance,” he had said in his statement.

There was ambiguity on whether India required $1 trillion for its own goals or for the needs of developing countries. With the Rajya Sabha reply on December 2, India has officially clarified its position and reiterated the importance of climate finance in delivering climate action.

In 2009, at COP15 in Copenhagen, developed country parties committed to a goal of mobilising jointly $100 billion a year by 2020 to address the needs of developing countries. They specified that the finance would come from a wide range of sources — public and private, bilateral, and multilateral, including alternative sources of finance.

But a climate finance delivery plan co-led by the minister of environment and climate change, Canada, Jonathan Wilkinson and state secretary, federal ministry for the environment, Germany, Jochen Flasbarth released days ahead of COP26 said developed countries will likely be able to mobilise $100 billion only in 2023, with a delay of three years compared to what was promised.

According to the United Nations Framework Convention on Climate Change (UNFCCC)’s standing committee on finance, developing countries need almost $6 trillion up to 2030 to implement their nationally determined contributions (NDCs) under the Paris Agreement. This clearly means that the current delivery of climate finance is too little, too late.

During the Glasgow negotiations, developed countries did not agree to an independent review of the delivery of $100 billion. The Organisation for Economic Co-operation and Development (OECD) is keeping accounts of that fund. Developing nations had contended that an independent body reviews the delivery of this money, but rich nations resisted the move.

India also called for a mandate to the standing committee of finance to deliver a multilaterally agreed definition of climate finance. There was no agreement on the nature of finance either at Glasgow — Will it be concessional grant-based? Or will private capital being invested be counted as climate finance?

Rich countries, particularly the United States, strongly resisted any separate stream of finance for loss and damage. The Glasgow Pact, instead of specifying how finance and compensation will be delivered for loss and damage (compensation for impacts of extreme climate change events and slow onset events like sea level rise), talks of setting up “dialogue between parties, relevant organisations, and stakeholders” to discuss the arrangements for the funding of activities to avert, minimise and address loss and damage.

Since the track record of developed nations on delivering climate finance is abysmal, it is good that India has officially put out an estimate of the money that it will need to deliver on its 2030 goals. India should call for transparency in the delivery of climate finance ahead of COP27 in Egypt for the entire developing world. Without any real progress on finance, there will be no equity in climate negotiations. This could greatly jeopardise any mitigation efforts by developing countries.

India must remain committed to the new climate goals announced at Glasgow. This will prove India to be a true leader among developing nations in solving the climate crisis.

The views expressed are personal

Unveiling 'Elections 2024: The Big Picture', a fresh segment in HT's talk show 'The Interview with Kumkum Chadha', where leaders across the political spectrum discuss the upcoming general elections. Watch Now!

Continue reading with HT Premium Subscription

Daily E Paper I Premium Articles I Brunch E Magazine I Daily Infographics
freemium
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, March 29, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On