China; other large economies must also pay for loss and damage: EU
- November 17, 2022
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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China; other large economies must also pay for loss and damage: EU
Subject : Environment
Context-
- Supporting the demand first put forward by the small island countries, the European Union asserted that China must also be asked to contribute towards loss and damage finance, a new funding mechanism that is proposed to be set up to help poor countries hit by climate disasters.
EU’s stand-
- China is one of the biggest economies on the planet, with a lot of financial strength.
- In 1992, there was a reasoning behind this, which I can follow, but no longer in 2022.
- EU’s position deepens the divide on the loss and damage finance.
- India is not being mentioned by name but some small island states have said that India must also be asked to contribute.
- The US also wants both India and China, and possibly other major economies, to contribute.
- EU was open to a setting up a new facility, but a much better, and quicker, way to start helping the affected countries right away was to use the existing financial instruments.
- The US, and other developed countries, also want existing instruments to be used for this purpose.
Concern over beneficiary of the climate finance-
- There is also a big difference on who the beneficiaries of loss and damage finance would be.
- Developing countries want every one of them to be able to access this money, but others have been insisting that only the most vulnerable and poor countries should benefit.
- Another issue being keenly tracked is the Indian proposal for a decision calling for a phase-down (instead of phase out) of all fossil fuels (and not just coal).
- The Indian proposal has won support from large number of developing countries and even EU, which uses large amount of oil and gas.
- But the United States is not on board, and neither is China.