India Asserts Importance of Climate Finance at COP29 Amid Calls for Emissions Reductions

India has firmly stated it will not accept any attempts by developed countries to shift the focus from climate finance for developing nations to emissions reductions in the Global South. Without sufficient support in finance, technology, and capacity building, efforts to combat climate change would be severely hindered. This stance was reiterated by India's Environment and Climate Secretary, Leena Nandan, in response to a draft text on the new climate finance goal.

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Nandan expressed disappointment over the shift in focus at a crucial time when full support for mitigation actions through adequate finance is essential. "COP after COP, we keep talking about mitigation ambitions, what is to be done without talking about how it is to be done. This COP started with a focus on enablement through a new climate finance goal NCQG, but as we move towards the end, we see shifting of the focus to mitigation," she stated.

Developed Countries' Responsibilities

According to the United Nations Climate Convention, high-income industrialised nations are responsible for providing finance and technology to help developing countries address climate change. These countries include the US, UK, Canada, Japan, Australia, New Zealand, and EU member states like Germany and France. At COP29, these nations have pushed developing countries to make deeper cuts in greenhouse gas emissions without addressing the central issue of finance.

Nandan emphasised that continuous talk of mitigation is meaningless unless supported by necessary enablement for climate actions on the ground. Finance is crucial for formulating and implementing new nationally determined contributions (NDCs), which countries must submit by February 2025. She called for clarity on various aspects of the draft text for the new climate finance goal.

Financial Demands and Proposals

Developing countries demand USD 1.3 trillion annually from 2025, 13 times the USD 100 billion pledged in 2009. They insist most funding should come from developed countries' public funds. However, developed nations have yet to propose an official figure. Negotiators hinted that European Union nations were discussing a global climate finance target between USD 200 billion and USD 300 billion per year.

The US and EU suggest that the NCQG should be a broad global investment goal drawing from public, private, domestic, and international sources. They also urge wealthier countries like China and Gulf states to contribute due to their current economic status. Developing nations view this as an attempt to shift responsibility for past emissions onto those who industrialised more recently.

Challenges in Reaching Consensus

Countries have been attempting to craft a new climate finance package for three years but have struggled to find common ground. Developing nations reject reliance on the private sector for funding due to concerns over profit motives rather than accountability. The talks are set to conclude soon, but consensus remains elusive as developed countries have not officially proposed a figure.

Nandan highlighted that developed countries should provide USD 600 billion annually in public funds as part of the total USD 1.3 trillion demanded by developing nations starting in 2025. She clarified that the new climate finance goal NCQG is not an investment goal and criticised proposals involving carbon pricing and private sector investments as contrary to its original purpose.

The ongoing discussions at COP29 aim to finalise a new climate finance package from wealthy nations to assist developing countries in reducing emissions and coping with escalating climate impacts. As negotiations continue, India remains steadfast in its demand for adequate financial support from developed countries to ensure effective climate action globally.