CLIMATE FINANCE - ENVIRONMENT

News: COP27 | India insists on higher global climate finance target by 2024 

What's in the news?

       Developing countries require substantive enhancement in climate finance from the floor of $100 billion per year to meet their ambitious goals and rich countries need to lead the mobilization of resources, India has stressed at the ongoing UN climate summit COP27.

Key takeaways:

Copenhagen pledge:

       At COP15 in Copenhagen in 2009, developed countries had committed to jointly mobilize $100 billion per year by 2020 to help developing countries tackle the effects of climate change.

       Rich countries, however, have repeatedly failed in delivering this finance.

Failed Promise:

       According to data from the Organisation for Economic Co-operation and Development (OECD), an intergovernmental body consisting of wealthy nations, developed countries mobilized $52.5 billion in 2013.

       After dropping to $44.6 billion in 2015, the finance flow has steadily increased. In 2020, the developed countries raised $83.3 billion, a jump from $80.4 billion in 2019, according to a fact sheet published by the Centre for Science and Environment.

       The Standing Committee on Finance has estimated that resources in the range of $6 trillion to $11 trillion are required till 2030 to meet the targets set by developing countries in their Nationally Determined Contributions (NDCs) and other communications including the Needs Determination Reports. 

New Collective Quantified Goal on Climate Finance:

       Developing countries, including India, are pushing rich countries to agree to a new global climate finance target also known as the new collective quantified goal on climate finance (NCQG) - which they say should be in trillions as the costs of addressing and adapting to climate change have grown.

Indian Delegation Highlights in COP-27:

       At a high-level ministerial dialogue on NCQG at COP27 on November 9, India highlighted that climate actions to meet the NDC targets require financial, technological, and capacity-building support from developed countries, people aware of the developments said.

       The ambitious goal set down by the developing countries requires substantive enhancement in climate finance from the floor of $100 billion per year.

       The mobilization of the resource needs to be led by the developed countries and should be long-term, concessional, and climate-specific with equitable allocation between adaptation and mitigation projects.

       The commitment of $100 billion made in 2009 by developed countries, was not only miniscule given the scale of needs, but has also not been achieved yet.

       India expects action from rich countries in terms of climate finance, technology transfer and strengthening the capacity of poor and developing countries to combat climate change.

       India believes COP27, themed 'Together for Implementation', should turn out to be the 'COP for Action' in terms of climate finance, technology transfer and capacity building.

       The scale of the problem facing the world is huge. Action cannot be delayed and hence concrete solutions must come up and implementation must start with COP27.

       India also seeks clarity on the definition of climate finance - the absence of which allows developed countries to greenwash their finances and pass off loans as climate-related aid.

NDCs:

       Nationally Determined Contributions are national plans to limit global temperature rise to well below two degrees Celsius, preferably to 1.5 degree Celsius.