India says climate finance is not an ‘investment goal’

Last Updated18/11/2024

At the ongoing COP29 negotiations in Baku, India stated that climate finance — the money that’s necessary to incentivise and facilitate developing countries’ adoption of renewable energy sources over fossil fuels — should not be seen as “investment goals” by developed countries.

At the ongoing COP29 negotiations in Baku, India strongly emphasized that climate finance should be treated as a unidirectional provision from developed to developing countries, not as an "investment goal." India’s lead negotiator, Naresh Pal Gangwar, highlighted that this aligns with the Paris Agreement's mandates.

Unidirectional Funding Obligation:
- India reiterated that developed countries must mobilize climate finance without treating it as a commercial investment. The Paris Agreement specifies developed nations as the primary providers of climate finance.
Required Funds and Current Gaps:
- $5-6.8 trillion is needed globally by 2030.
- The existing commitment of $100 billion annually (agreed upon in 2009) has been partially fulfilled, only in 2022.
- India has called for at least $1.3 trillion annually until 2030 to support developing nations' mitigation and adaptation efforts.

New Collective Quantified Goal (NCQG):
- The NCQG is a framework for determining the financial needs of developing nations, aiming to finalize a new figure by 2025.
- India and other developing countries argue that any new goal must respect equity, historical responsibility, and the principles of the Paris Agreement.
Transparency and Accountability:
- India criticized developed countries for failing to meet previous financial commitments and urged clarity on the definition of climate finance.
- The lack of transparency undermines trust in multilateral processes.

Increased Climate Finance:
- Developed countries must honor their commitments and provide concessional, grant-based, non-debt-inducing financial support.
Equitable Principles:
- Address the unique circumstances of the Global South, considering sustainable development goals and poverty eradication.
Adherence to Paris Agreement:
- India opposed any renegotiation of the Paris Agreement, emphasizing the need for developed nations to fulfill their obligations.

BASIC Countries’ Stand:
- Alongside other BASIC countries, India demanded that developed nations honor their commitments rather than dilute their obligations.
Historic Context:
- The $100 billion target, established in 2009, is outdated and insufficient to meet current demands. India urged a revised mechanism to match evolving climate needs.