As the 29th Conference of Parties (COP29) approaches in Baku, India is preparing to emphasize its commitment to the Paris Agreement while pressing for increased climate finance from developed countries. This funding is essential for developing nations to adapt to the impacts of climate change and mitigate its effects.
In 2009, during COP15 in Copenhagen, developed countries pledged to mobilize $100 billion annually by 2020 to support developing nations. However, this target has faced criticism for its lack of clarity regarding what constitutes climate finance. Discrepancies remain over whether traditional business investments in clean energy should be classified as climate finance or if these funds should be considered separate from existing development financing. Although the Organisation for Economic Cooperation and Development (OECD) claimed in 2022 that the $100 billion goal had been met, many experts argue that this amount is insufficient for the growing needs of adaptation and mitigation efforts in developing countries.
The upcoming COP29 is being referred to as the “finance COP,” focusing on establishing a new collective quantified goal (NCQG) for climate finance. This goal aims to set a more ambitious target for financial transfers to developing countries, replacing the previous $100 billion commitment. According to estimates, developing nations will require between $500 billion and $1 trillion annually from international sources to effectively address climate change impacts. The urgency for this funding is underscored by recent reports indicating that without significant cuts in greenhouse gas emissions, global temperatures could rise by 2.6°C-3.1°C this century, with devastating consequences.
India’s stance at COP29 will likely include a call for diverse forms of climate finance, such as grants and concessional loans through multilateral banks, while rejecting any attempts to redefine climate finance in a way that dilutes accountability or includes countries outside the Paris Agreement framework. A senior Indian official noted that while flexibility is welcome, any business-as-usual investments disguised as climate finance would not be acceptable.
The discussions at COP29 will also address the loss and damage fund initiated at COP28, which aims to provide financial assistance to countries suffering from the adverse effects of climate change. So far, commitments have totaled nearly $700 million, but experts warn that this is far from sufficient to meet the urgent needs of vulnerable nations.
A draft negotiating text suggests targets ranging from $1 trillion to $1.5 trillion with a commitment period extending until 2035. However, concerns have been raised about developed countries attempting to redefine their responsibilities by labeling major economies like India and China as contributors to the NCQG discussions.
The success of COP29 will hinge on achieving a robust NCQG that restores trust between developed and developing nations while addressing historical responsibilities and specific challenges faced by vulnerable countries. Shailly Kedia from The Energy Resources Institute emphasized that a favorable outcome is crucial for ensuring that developing nations receive the necessary support to combat climate change effectively.
CEO of onfra.io, brings a wealth of expertise in technology and entrepreneurship. With a passion for innovation, Aadil leads the team at onfra.io in revolutionizing visitor management solutions.