On Thursday, India called for developed nations to pledge at least USD 1.3 trillion annually until 2030 to support developing countries, emphasizing that the UN climate conference in Azerbaijan’s negotiations on a new climate finance package must not be framed as an “investment objective”.
Increase in Climate Finance
Representing the Like-Minded Developing Countries (LMDC) at the sixth High-Level Dialogue on Climate Finance at COP29, India highlighted the importance of providing assistance to developing nations to adapt to a warming planet through grants, concessional loans, and non-debt-creating aid.
It argued that the new climate finance package or the New Collective Quantified Goal (NCQG), which is a key focus for this year’s UN climate summit, should reflect the changing needs of developing countries and be free from conditions that could impede their development.
“It is imperative for developed countries to make a commitment to providing and mobilizing at least USD 1.3 trillion every year until 2030 through grants, concessional finance, and non-debt-inducing support,” Naresh Pal Gangwar, the Indian negotiator, stated.
The negotiator underscored that this support is crucial for moving forward at the COP30 in Belem, Brazil, where all parties are expected to present their updated climate action plans.
India also made it clear that the “NCQG cannot be transformed into an investment goal,” as it is a one-way provision and mobilization goal from developed to developing countries.
It rejected any modifications to the goal that exceed the mandate of the UN climate change convention and its Paris Agreement.
“We see no room for altering the provisions of the Paris Agreement,” it declared.
India also expressed its opposition to any elements of a new goal that fall outside the purview of the UN climate change convention and its Paris Agreement.
Under the UN climate change convention and the Paris Agreement, it is the duty of developed nations to provide climate finance to developing countries.
However, developed countries are advocating for a “global investment goal” that would gather funding from various sources, including governments, private entities, and investors.
Harjeet Singh, a climate activist and the global engagement director for the Fossil Fuel Non-Proliferation Treaty Initiative, described turning climate finance into an “investment goal” as a breach of trust for those most affected by climate impacts.
“India and other developing nations are unequivocal in their need for the commitment of trillions annually through grants and non-debt-creating support, not investment schemes that allow wealthy nations to profit from the crisis they have contributed to,” Singh stated.
“Anything less is a double injustice, placing additional financial burdens on those already striving to shift away from fossil fuels and safeguard their communities,” he added.
India criticized the performance of developed countries on their financial and technological pledges, noting that the USD 100 billion target, set in 2009, is already insufficient.
India Stated its disappointment in developed countries for their inadequacy in committing to provide $100 billion finance according to previous agreement. The statement indicated that it remains unclear what constitutes climate finance for developed nations.
“Having a precise definition of climate finance, that aligns with the rules of the UNFCCC and its Paris Agreement, will enhance openness and is crucial for advancing positive discussions and fostering trust.”
During COP15 in 2009, advanced countries committed to contribute USD 100 billion annually to assist developing countries in adapting to climate change by 2020. Nonetheless, this goal was achieved in 2022, with loans making up approximately 70 percent of the overall climate finance contributed.
The NDC Partnership is expected to take over the USD 100 billion goal next year.
