India says climate finance is not an ‘investment goal’

• At the ongoing COP29 negotiations in Baku, India stated that climate finance — the money that’s necessary to incentivise and facilitate developing countries’ adoption of renewable energy sources over fossil fuels — should not be seen as “investment goals” by developed countries.

Highlights:

• At the ongoing COP29 negotiations in Baku, India strongly emphasized that climate finance should be treated as a unidirectional provision from developed to developing countries, not as an "investment goal." India’s lead negotiator, Naresh Pal Gangwar, highlighted that this aligns with the Paris Agreement's mandates.

India’s Stance on Climate Finance

• Unidirectional Funding Obligation:
  • India reiterated that developed countries must mobilize climate finance without treating it as a commercial investment. The Paris Agreement specifies developed nations as the primary providers of climate finance.
• Required Funds and Current Gaps:
  • $5-6.8 trillion is needed globally by 2030.
  • The existing commitment of $100 billion annually (agreed upon in 2009) has been partially fulfilled, only in 2022.
  • India has called for at least $1.3 trillion annually until 2030 to support developing nations' mitigation and adaptation efforts.

Key Issues at COP29

• New Collective Quantified Goal (NCQG):
  • The NCQG is a framework for determining the financial needs of developing nations, aiming to finalize a new figure by 2025.
  • India and other developing countries argue that any new goal must respect equity, historical responsibility, and the principles of the Paris Agreement.
• Transparency and Accountability:
  • India criticized developed countries for failing to meet previous financial commitments and urged clarity on the definition of climate finance.
  • The lack of transparency undermines trust in multilateral processes.

India’s Key Demands

• Increased Climate Finance:
  • Developed countries must honor their commitments and provide concessional, grant-based, non-debt-inducing financial support.
• Equitable Principles:
  • Address the unique circumstances of the Global South, considering sustainable development goals and poverty eradication.
• Adherence to Paris Agreement:
  • India opposed any renegotiation of the Paris Agreement, emphasizing the need for developed nations to fulfill their obligations.

Developing Nations' Challenges and Calls for Fairness

• BASIC Countries’ Stand:
  • Alongside other BASIC countries, India demanded that developed nations honor their commitments rather than dilute their obligations.
• Historic Context:
  • The $100 billion target, established in 2009, is outdated and insufficient to meet current demands. India urged a revised mechanism to match evolving climate needs.

Prelims Takeaways

• New Collective Quantified Goal on Climate Finance (NCQG)
• Like-Minded Developing Countries (LMDCs)