Ahead of COP-29, India to emphasise Paris deal red lines on climate finance

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Last Updated12/11/2024

With the 29th edition of the Conference of Parties expected to commence in Baku, India is expected to stick to its stance of getting developed countries to increase climate finance – a broad term for money for adapting to the impacts of climate change.

As the 29th Conference of Parties (COP29) approaches in Baku, India is expected to continue pressing developed nations to significantly increase climate finance for developing countries, staying true to the foundational principles of the Paris Agreement.
A critical aspect for India and other developing countries is the call for financial support that truly addresses climate adaptation and technology transitions, rather than short-term investments framed as climate finance.

At COP15 in Copenhagen, developed countries committed to mobilizing $100 billion annually by 2020 to help developing countries address climate change. However, this target remained loosely defined, with no clear agreement on what qualifies as climate finance.
For example, debates have continued over whether business investments in clean energy should be counted or if these investments are merely part of general economic development funds. In 2022, the OECD claimed that this $100 billion target had been reached, but many developing nations dispute this, noting a lack of transparency and accountability.

With growing global efforts to meet the Paris Agreement’s goal of limiting global temperature rise to below 2°C, COP21 in 2021 acknowledged that a more substantial climate finance commitment was essential. Countries have been working since then on defining a new target, known as the New Collective Quantified Goal (NCQG), expected to take effect by 2025.
This new goal aims to go beyond the $100 billion baseline, with some proposed figures ranging between $1 trillion and $1.5 trillion, potentially extending commitments until 2035.

India has expressed flexibility in the forms of climate finance—such as concessional loans, technology investments, and multi-lateral bank support—but remains wary of approaches that prioritize profit-driven investments or attempt to include countries like China and India as climate finance contributors, labeled under terms such as “major economies.
” According to a senior Indian official, without substantive changes to address actual climate adaptation needs, any finance labeled as "business-as-usual" would fail to advance genuine climate goals.

The success of COP29 will largely hinge on reaching a consensus on the NCQG, which could help rebuild trust between developed and developing countries. Shailly Kedia, Associate Director at The Energy Resources Institute (TERI), emphasized that the NCQG must respect historical responsibility, recognize the unique challenges of developing nations, and include provisions for capacity-building.
Without these considerations, the outcome may fall short of fostering equitable and effective climate action.