COP29, climate finance and its optical illusion

/ Editorials, English /

COP29, climate finance and its optical illusion

(Source – The Hindu, International Edition – Page No. – 8)

Topic : GS2 – International Relations, GS3 – Environment

Context :

  • $300 Billion Climate Finance Target: Developed nations aim to provide $300 billion by 2035 for climate support.
  • Insufficient Support: This amount falls short of the needs of developing countries.
  • Call for Action: Increased financial commitments are necessary to meet the equitable support required for climate challenges.

Finance in Climate Change Negotiations

  • Historical Context: Finance has been pivotal in climate negotiations since the UN discussions began in 1991, leading to the UNFCCC in 1992.
  • UNFCCC Framework: Article 4(7) ties the climate actions of developing countries to financial and technological support from developed nations.
  • Paris Agreement Commitment: Article 9(1) requires developed countries to mobilize finance for developing nations, with the IPCC emphasizing finance as crucial.

Falling Short of Commitments

  • 2009 Pledge: Developed nations promised to mobilize $100 billion annually by 2020; this was only achieved in 2022.
  • Funding Needs: The $100 billion is insufficient for the increasing financial demands of developing nations’ Nationally Determined Contributions (NDCs).
  • NCQG Discussions: At COP29 in Baku (Nov 2024), efforts were made to establish a New Collective Quantified Goal on Climate Finance, but developed nations proposed only $300 billion annually by 2035, despite developing nations requesting $1.3 trillion by 2030.

Inadequacies in Climate Finance Goals

  • Financial Requirements: Developing countries need approximately $455-$584 billion yearly for climate actions.
  • Lack of Specific Funding: The NCQG does not specify funding for Least Developed Countries (LDCs) or Small Island Developing States (SIDS).
  • Ignored Requests: SIDS sought $39 billion and LDCs requested $220 billion during COP29, which were overlooked.
  • Future Projections: The Global Stocktake 2023 indicated future costs might reach $447-$894 billion annually by 2030, a figure that wasn’t acknowledged.

India’s Stance on the NCQG

  • Equity Advocacy: India calls for climate finance aligning with equity and the principle of common but differentiated responsibilities.
  • Funding Request: India demands $1.3 trillion annually by 2030, including at least $600 billion in grants and concessional funding.
  • Disappointment Over NCQG: India rejected the NCQG proposal, citing it as inadequate and unfair, and stressed that inadequate finance hampers its ability to pursue ambitious NDCs.

Responsibilities of Developed Nations

  • NDC Expectations: The Paris Agreement is contingent on developing nations presenting ambitious NDCs.
  • Need for Enhanced Finance: Developed nations must increase the quantity and quality of climate finance and establish a supportive financial framework.
  • Accessibility of Finance: Affordable and available climate finance is essential for developing countries to successfully implement their climate actions.

Conclusion

  • Importance of Climate Finance: Sufficient climate finance is vital for developing nations to meet their climate commitments and overall global climate goals.
  • Need for Accountability: Developed nations must significantly boost their financial contributions and ensure mechanisms are accessible and equitable.
  • Global Impact: Without equitable finance, efforts to combat climate change and reach the Paris Agreement targets will fall short.