CLIMATE
COMPENSATION FUND - ENVIRONMENT
News: U.N. climate talks open in Egypt, climate compensation on agenda for first time
What's
in the news?
● Delegates at the U.N.’s COP27 climate summit in Egypt agreed to discuss whether rich nations should compensate poor countries most vulnerable to climate change for their suffering.
Key
takeaways:
●
This creates for the first time an
institutionally stable space on the formal agenda of COP and the Paris
Agreement to discuss the pressing issue of funding arrangements needed to deal
with existing gaps, responding to loss and damage,” COP27 president Sameh
Shoukry told the opening plenary.
●
The item was adopted to the agenda in Sharm el-Sheikh, Egypt, as world
leaders arrived for the negotiations scheduled to run through November 18.
● Much of the tension at COP27 is expected to relate to loss and damage - funds provided by wealthy nations to vulnerable lower-income countries that bear little responsibility for climate-warming emissions.
Climate
funds:
1.
Green Climate Fund:
●
The Green Climate Fund (GCF) was adopted
as a financial mechanism of the UN Framework Convention on Climate Change (UNFCCC) at the end of 2011 in CoP 16.
●
The GCF is intended to support projects,
programmes, policies and other activities in developing countries for combating climate change.
●
The GCF finances activities to both enable
and support adaptation, mitigation (including REDD+), technology development
and transfer (including CCS), capacity-building and the preparation of national
reports.
2.
GEF:
●
The Global Environment Facility (GEF) has
served as an operating entity of the financial mechanism since the Convention’s
entry into force in 1994.
●
Two
special funds are set up and are managed by the GEF.
○
The Special Climate Change Fund (SCCF)
○ The Least Developed Countries Fund (LDCF).
3.
Adaptation Fund:
●
The Adaptation Fund (AF) was established
under the Kyoto Protocol in 2001.
4.
National Adaptation Fund for Climate Change(NAFCC):
●
It was founded in 2015 to cover the costs
of climate change adaptation for Indian states and union territories that are
particularly vulnerable to the effects of climate change.
5.
National Clean Energy Fund (NCEF):
●
The Fund was established to encourage
sustainable energy and was initially supported by a carbon levy on enterprises
that used coal.
●
The Finance Secretary serves as the
Chairman of an Inter-Ministerial Group that governs the organisation.
●
Its mission is to fund Research and Development (R&D) of innovative clean energy
technology in both the fossil and non-fossil fuel industries.
6.
National Adaptation Fund:
●
The fund, which has a capital of Rs. 100
crore, was founded in 2014 with the goal of bridging the gap between need and
available finances.
●
The Ministry of Environment, Forests and
Climate Change (MoEF&CC) manages
the fund.