Climate finance are not ‘investment goals’, says India at COP29 summit in Baku

 As the current COP29 climate negotiations get under way at Baku, India made it clear to the developed countries that climate finance should not be treated as “investment objectives.” Essentially, climate finance represents the finance needed so that developing countries are equipped to switch over to renewable energy and better deal with the consequences of climate change.

Climate finance, Naresh Pal Gangwar, India’s lead negotiator said refers to a “unidirectional provision and mobilization goal from the developed to the developing countries,” under the Paris Agreement. He again insisted that the developed world has to provide and mobilize this finance which is more important for developing nations so they can take ambitious action on climate without harming their developmental needs.

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To date, debates regarding COP29 in Baku revolve around the New Collective Quantified Goal (NCQG) in Climate Finance. It supposedly determines the collective sum that developing nations would require from the developed nations to fund their adaptation and switch over to renewable energy resources.

The target agreed in 2009 was to mobilize and deliver US $ 100 billion annually from 2020-2025. Until 2022, the countries could not reach that target. The countries are now working on agreeing a new, higher target for which there will be operations by 2025.

India has asked developed countries to ensure a commitment to providing and mobilizing at least $1.3 trillion each year up to 2030. The finance should be offered in the form of grants, concessional loans, and non-debt-inducing support for constantly changing needs of developing countries.

 For Equity and Transparency

Reiterating the principles of equity and common but differentiated responsibilities as enshrined in the UNFCCC and Paris Agreement, India reiterated at COP29 that the historical responsibilities and differing capacities of countries must be recognised and the developmental needs and poverty eradication of the Global South must not be compromised.

India stressed the requirement to make climate finance clear, trusting, and transparent. It insisted that clear definition of climate finance, drawing references from UNFCCC and Paris Agreement provisions, will indeed enforce transparency, hence rendering constructive deliberations feasible.

Significance of COP29 Outcome

India stated that the decision reached in the COP29 on New Collective Quantified Goal on Climate Finance would be critical as it will form the basis to help achieve meaningful progress in the global climate effort, including the submission of updated NDCs to COP30.

Genre: World News

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