Indian companies should invest in ‘climate vulnerable’ nations: Nasheed

Indian companies should invest in ‘climate vulnerable’ nations: Nasheed

Subject : Environment

Section: Int Conventions

Context:

• The former President of Maldives, Mohamed Nasheed, emphasized the need for Indian companies to invest in clean energy projects in Maldives and other climate-vulnerable countries.
• Nasheed suggested that such investments would be more beneficial than putting money into traditional sectors like “iron and steel.”

Key Highlights:

• Climate Vulnerable Forum (CVF):
  • International partnership of 58 countries highly vulnerable to climate change.
  • Represents regions including Africa, Asia, the Caribbean, Latin America, and the Pacific.
  • A platform for South-South cooperation to address global climate change challenges.
  • Rotating chairmanship with Ghana currently holding the position for 2022-2024, following Ethiopia’s leadership.
• CVF’s Objectives:
  • Formation in November 2009 near Male’, Maldives.
  • Adoption of the Manila-Paris Declaration and the 2016-2018 Roadmap during the CVF High-Level Meeting at UNFCCC COP21.
  • Commitment at COP22 to ambitious climate action, including achieving maximal resilience and 100% domestic renewable energy production.
• India’s Commitments:
  • India committed to installing 500 GW of electricity from non-fossil fuel sources.
  • Pledged to reduce emissions by 45%, aligning with the Paris Agreement’s goals of limiting global temperature rise below 2°C and ideally below 1.5°C.
• Mohamed Nasheed’s Recommendations:
  • Nasheed encourages Indian companies to invest in renewable energy projects in climate-vulnerable countries.
  • Highlights the importance of development banks and richer countries in “de-risking investments” for climate-vulnerable nations.
  • Nasheed notes interest from several Indian investors in renewable energy projects within the CVF, particularly in solar and wind.
• Role of Development Banks:
  • Nasheed underscores the significant role development banks can play in de-risking investments in climate-vulnerable nations.
  • The focus is on attracting real investments rather than relying solely on grants.