Developed nations trying to renegotiate climate finance
- The Paris pact specifies that climate finance and technology support should flow from developed to developing countries.
India flagged that developed countries are trying to renegotiate who or which countries will provide resources for climate change mitigation, and how often nationally determined contributions (NDCs) will be updated, violating principles of equity and common but differentiated responsibilities (CBDR, under which countries take climate action as per their respective capabilities) .
During an informal stock taking of negotiations by Glasgow climate change conference (COP 26) President, Alok Sharma on Monday, India’s lead negotiator, Richa Sharma on behalf of BASIC (Brazil, South Africa, India, and China) countries said these issues are already specified in the Paris Agreement and should not be renegotiated.
The Paris Agreement specifies that climate finance and technology support should flow from developed to developing countries. HT reported on Sunday that there are talks of including some developing countries particularly China, Saudi Arabia, even India as donors for the post 2025 new climate finance goal. India has also flagged the erosion of trust due to developed countries’ failure to deliver the $100 billion-a-year fund.
“It’s been over a decade that the $100 billion was promised and the world is still waiting which is why trust in multilateralism at stake. There should be a structured process for a new higher finance goal which is a simple ask from developing countries”, she said. If not resolved this will jeopardise net zero commitments of parties and NDCs, Sharma added. India expects credible carbon markets and not cheap offsets, she pointed out.
“Trust in multilateralism and credibility of the process is at stake. Post-2020 mitigation ambition and net zero pledges require significantly enhanced climate finance...BASIC would like to warn that lack of a serious approach to climate finance will jeopardize the enhanced mitigation and adaptation ambition as well as net zero pledges of parties,” she added.
India’s view is seconded by many developing countries.
Bolivia’s lead negotiator, Diego Pacheco, on behalf of Like Minded Developing Countries said: “ Let’s be honest they don’t want to define finance, talk about loss and damage, new finance goal. How can finance be achieved like this? The history of broken promises and unfulfilled commitments has a strong bearing of where we are today.” According to him, the principles of equity and CBDR are non-negotiable.
Developed nations are resisting demands for a new finance goal for the post 2025 period, financial compensation for loss and damage, and an independent review of the promised $100 billion-a-year financing.
“The stakes could not be higher for countries, communities and peoples on the front lines of the climate crisis... This is a race that we cannot afford to lose. It’s remarkable that [after] close to 30 years of international climate negotiations, adaptation finance represents a mere 25 %of total climate finance, despite what we know and what we’re seeing and experiencing all over the world,” said Selwin Hart, Special Adviser to the UN Secretary-General on Climate Action during his address at COP26
However, Frans Timmermans, executive vice-president of the European Commission in-charge of the European Green Deal during a press conference by EU at COP 26 said: “We are very serious about the delivery of the USD 100 billion. Once delivered there can be some serious discussion on the post 2025 new finance goal.”
Meanwhile climate economist, Nicholas Stern said on Monday that India had made among the “most important” NDC announcements.
Former US President, Barak Obama attended the talks on Monday.