The Hindu Editorial Analysis- 1st January 2025 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

COP29, Climate Finance and its Optical illusion

Why in News?

Developed nations' climate finance goal of $300 billion by 2035 falls short of developing countries' demand for equitable support.

Finance in Climate Change Negotiations

• Finance has been a key focus in climate change discussions since 1991, leading to the UNFCCC in 1992.
• Article 4(7) of the UNFCCC ties climate action commitments of developing countries to the finance and technology provided by developed nations.
• The Paris Agreement (Article 9(1)) obligates developed countries to mobilize finance for developing nations, with finance being a crucial factor in the IPCC's sixth assessment report.

Falling Short of Commitments

• In 2009, developed countries promised to mobilize $100 billion annually by 2020, a target only achieved in 2022.
• This amount is insufficient to meet the increasing financial needs for climate actions as per developing nations' NDCs.
• The 29th COP in Baku, Azerbaijan, aimed to set a New Collective Quantified Goal on Climate Finance, replacing the $100 billion baseline.
• Despite developing nations' request for $1.3 trillion annually by 2030, developed countries offered only $300 billion annually by 2035.

Inadequacies in Climate Finance Goals

• Developing countries require $455-$584 billion annually for climate action, according to the UNFCCC's finance committee.
• The NCQG does not specify funding amounts for least developed countries (LDCs) or small island states (SIDS).
• During COP29, SIDS requested $39 billion and LDCs $220 billion, but these requests were overlooked.
• The Global Stocktake 2023 indicated future costs could reach $447-$894 billion annually by 2030, but this was disregarded.

India’s Stance on the NCQG

• India supports climate finance based on equity and the principle of common but differentiated responsibility and respective capability.
• India advocated for $1.3 trillion annually by 2030, with at least $600 billion in grants and concessional resources.
• India expressed disappointment over the NCQG's adoption without its input and rejected the proposal as inadequate and unfair.
• India stressed that insufficient finance hampers its ability to implement and submit ambitious NDCs.

Responsibilities of Developed Nations

• The Paris Agreement depends on ambitious and effective NDCs from developing nations.
• Developed nations must improve the scale and quality of climate finance and create a coherent climate finance framework.
• Adequate, accessible, and affordable climate finance is vital for enabling the developing south to achieve their climate action objectives.

Conclusion

• Sufficient climate finance is essential for helping developing nations meet their climate commitments and global climate objectives.
• Developed nations need to take responsibility by significantly increasing financial support and ensuring accessible and affordable mechanisms.
• Without fair and adequate finance, global efforts to combat climate change and achieve the Paris Agreement's goals will be inadequate.

PYQ

Describe the major outcomes of the 26th session of the Conference of the ParSes (COP) to the United NaSons Framework Convention on Climate Change (UNFCCC). What are the commitments made by India in this conference? (250 words/15m) (UPSC CSE (M) GS-3 2021)