On climate finance to developing nations
(Source – The Hindu, International Edition – Page No. – 10)
| Topic: GS2 – International Relations ,GS3 – Environment |
| Context |
| ● The upcoming COP29 aims to address critical climate finance issues, particularly concerning developing countries vulnerable to climate change.
● Despite their minimal contribution to global emissions, these nations face significant challenges in financing climate initiatives. ● Discussions will include establishing new climate finance targets to support their climate action efforts. |
Overview of COP29
- The 29th Conference of the Parties (COP29) of the UNFCCC is set to take place in Baku, Azerbaijan, from November 11 to 22, focusing on climate finance as a central theme.
Vulnerability of Developing Countries
- Economically developing nations are particularly vulnerable to climate change due to geographical factors and reliance on sensitive sectors like agriculture.
- Despite their vulnerability, these countries contribute minimally to global emissions, with developed nations accounting for 57% of cumulative emissions since 1850, as per the Sixth Assessment Report of the Intergovernmental Panel on Climate Change.
- Developing countries struggle with competing developmental needs, hindering their ability to independently take climate action.
- The 2009 Copenhagen Accord committed developed countries to provide $100 billion annually in climate finance to developing nations by 2020.
Understanding Climate Finance
- The UNFCCC defines climate finance as funding from local, national, or transnational sources aimed at supporting climate mitigation and adaptation efforts.
- The OECD reports on climate finance flows from developed to developing countries, with 69.4% of international public climate finance in 2022 being loans and 28% grants.
- Critics argue that these reports should reflect actual disbursals rather than mere commitments and emphasize the need for new, additional funds.
Need for Climate Finance
- Developing countries require external financing for climate initiatives, as 675 million people lacked electricity access in 2021, according to the IEA.
- High capital costs for renewable energy technologies, which are often double in developing economies, necessitate external financial support to balance development and climate action.
India’s Climate Financing Needs
- India aims for 500 GW of non-fossil fuel generating capacity and significant investments in green hydrogen and electric vehicles by 2030, requiring ₹16.8 lakh crore and ₹8 lakh crore, respectively.
- Long-term projections estimate a need for ₹850 lakh crore between 2020 and 2070 to achieve net-zero emissions.
New Collective Quantified Goal (NCQG)
- Establishing a new annual climate finance mobilisation target, the NCQG, is crucial.
- It should encompass actual disbursals, new and additional funds, public capital as direct grants, and private capital mobilised by public investment.
- An expert group has projected that developing countries (excluding China) will need approximately $1 trillion in external finance by 2030.
| PYQ: Discuss the consequences of climate change on the food security in tropical countries. (150 words/10m) (UPSC CSE (M) GS-1 2023) |
| Practice Question: Discuss the significance of climate finance for developing countries in the context of the upcoming COP29. What measures should be taken to ensure effective mobilisation of climate finance to support their adaptation and mitigation efforts? (250 Words /15 marks) |
