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.