India’s Stance at COP-29: Climate Finance Should Not Be an Investment Goal

India’s Stance at COP-29: Climate Finance Should Not Be an Investment Goal

Sub : Env

Sec: Int conventions

Why in News

• India has made a significant statement at the ongoing COP-29 negotiations in Baku, Azerbaijan. During the discussions, India emphasized that climate finance should not be viewed as an “investment goal” by developed nations, underlining the need for a clear understanding of responsibilities between developed and developing countries.

India’s Position on Climate Finance:

• India stated that climate finance—financial support aimed at helping developing countries transition to renewable energy and adapt to climate change—should not be treated as an investment opportunity by developed countries.
• India, emphasized that climate finance is a “unidirectional provision,” meaning it should flow from developed to developing nations as outlined in the Paris Agreement.
• Negotiators at Baku are working on the New Collective Quantified Goal on Climate Finance (NCQG). This goal aims to determine the financial requirements that developing countries will need to transition to renewable energy while ensuring their development needs are met.
• The previous target, set in 2009, aimed to mobilize $100 billion annually from developed countries between 2020 and 2025. However, this target was not fully met until 2022, leading to calls for a revised financial target.
• The revised financial goal, expected to be finalized by 2025, is crucial to ensure the success of COP-29.
• Representing the ‘Like-Minded Developing Countries’ (LMDCs) group, India highlighted that climate change impacts are already evident in the form of increasing natural disasters.
• India stressed the importance of this COP-29 meeting, calling it a pivotal moment in the global fight against climate change, especially for countries in the Global South.
• The principles of the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement, such as equity and “common but differentiated responsibilities and respective capabilities” (CBDR-RC), were reiterated by India.

About New Collective Quantified Goal (NCQG):

• The NCQG is intended to set a new global climate finance target for developed countries to support developing nations in their climate action efforts. It’s meant to succeed and expand upon the previous goal of mobilizing $100 billion annually by 2020, which was established at the 2009 Copenhagen Climate Conference.

Key Features:

1. Quantified Goal:The NCQG aims to establish a specific, measurable target for climate finance.
2. Collective Effort:It represents a joint commitment from developed countries, rather than individual national pledges.
3. Post-2025 Framework:The NCQG is set to come into effect after 2025, building on the previous $100 billion goal.
4. Comprehensive Scope:It’s expected to cover various aspects of climate finance, including mitigation, adaptation, and addressing loss and damage.

Negotiation Process: The NCQG is being discussed and negotiated through a series of technical expert dialogues and high-level ministerial meetings under the UNFCCC (United Nations Framework Convention on Climate Change) process.

COP29 of UNFCCC:

• Date: Scheduled for November 11-24, 2024
• Location: Baku, Azerbaijan
• It follows COP28 held in Dubai, UAE, in 2023, which saw significant discussions on the phase-out of fossil fuels and the operationalization of the loss and damage fund.

Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC):

• CBDR-RC is a principle in international climate policy recognizing that countries have shared responsibilities to address climate change, but with differentiated obligations.
• It was first articulated in the 1992 United Nations Framework Convention on Climate Change (UNFCCC) to account for varying historical contributions to greenhouse gas emissions.
• Equity Principle: The principle acknowledges that developed countries, due to higher historical emissions, should take greater responsibility for mitigation and financial support.
• It emphasizes that countries’ obligations should vary based on their capabilities, resources, and level of development.
• Paris Agreement: CBDR-RC remains a core tenet, guiding the differentiated commitments of countries in climate action, including finance, technology transfer, and capacity building.
• The principle underlines the gap between developed nations’ resources and the vulnerabilities and needs of developing countries.
• CBDR-RC includes the expectation that developed countries will provide financial aid to support climate efforts in less capable nations.
• It calls for technology transfer and capacity building from developed to developing nations to address climate challenges.
• The principle ensures that developing nations can pursue sustainable development without being burdened by strict emission reduction targets.