India Urges Developed Nations to Provide USD 1.3 Trillion Annually for Developing Countries' Climate Needs

India has urged developed nations to pledge at least USD 1.3 trillion annually until 2030 for developing countries. This demand was made during the UN climate conference in Azerbaijan. India stressed that this financial support should be in the form of grants, concessional financing, and non-debt aid. The new climate finance package, currently under negotiation, should not be seen as an investment target.

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Naresh Pal Gangwar, a joint secretary in India's Ministry of Environment, Forest and Climate Change, highlighted the importance of this support. He stated it is crucial for progress towards COP30 in Belem, Brazil. At this event, all parties are expected to present updated Nationally Determined Contributions or national climate plans. "Achieving this outcome will set a solid foundation for meaningful progress in our global climate efforts," Gangwar said.

Climate Finance and Developing Nations

India emphasised that the New Collective Quantified Goal (NCQG) should align with the evolving needs of developing countries. It should not have restrictive conditions that could impede their growth. India also stated that NCQG must remain a unidirectional provision from developed to developing countries. The Paris Agreement clearly assigns the responsibility of providing climate finance to developed nations.

Developing countries argue that under the UN climate change convention and the Paris Agreement, developed nations must mobilise climate finance for them. However, developed countries are advocating for a global investment goal involving various funding sources like governments and private investors. India finds this approach unacceptable as it deviates from the original mandate.

Challenges with Climate Finance Commitments

India criticised the performance of developed countries regarding their financial and technological commitments. The USD 100 billion target set in 2009 was deemed inadequate and has often been unmet. India pointed out that there is no clarity on what developed countries consider as climate finance.

"Transparency and trust are the backbone of any multilateral process," India stated. A clear definition of climate finance aligned with the UNFCCC and its Paris Agreement is essential for promoting transparency and fostering constructive discussions. This clarity is vital for building trust among nations.

The USD 100 billion annual target was promised by developed countries at COP15 in 2009 to assist developing nations by 2020. However, this goal was only achieved in 2022, with loans comprising about 70% of the total climate finance provided. The NCQG is set to replace this target next year.

India's per capita emissions stand at just 2.9 tonnes of CO2 equivalent, significantly lower than the global average of 6.6 tCO2e. As the world's fastest-growing major economy, India insists that developed nations must commit to mobilising at least USD 1.3 trillion annually through grants and concessional finance until 2030.