At the 29th Conference of the Parties (CoP29) held in Baku, Azerbaijan, India strongly advocated for a substantial increase in climate finance for developing nations, urging developed countries to commit to mobilizing $1.3 trillion per year from now until 2030. This call for enhanced funding is based on the evolving needs of developing nations in the face of increasingly severe climate impacts. India, representing the Like-Minded Developing Countries (LMDCs), emphasized that climate finance should not be subjected to growth-inhibiting conditionalities but should be offered in the form of grants, concessional finance, and non-debt-inducing support.

In his statement, Naresh Pal Gangwar, the additional secretary of India’s Environment Ministry and lead negotiator at CoP29, made it clear that developed nations have a historic responsibility to support climate action in the Global South, where extreme weather events have become more frequent and intense. The Global South, comprising nations that are already feeling the severe effects of climate change, is in dire need of financial support for both mitigation and adaptation strategies.

India’s intervention aligns with the principles laid out in the Paris Agreement, which underlines the importance of equity and the common but differentiated responsibilities of nations. Developed countries have long been committed to providing climate finance under the UNFCCC framework, yet their performance has been disappointing. India also highlighted the lack of transparency and the confusion surrounding what constitutes climate finance and whether existing pledges like the $100 billion per year, initially promised by developed nations for climate action, are being accurately met.

The $100 billion climate finance pledge, which was supposed to be met by 2020, has been extended until 2025, but experts have pointed out that this amount is insufficient given the actual needs of developing countries. According to various estimates, developing countries need up to $1.5 trillion annually for their unique climate needs, a figure which likely falls short when compared to the $5.8 trillion projected to be required by 2030. In fact, regional needs vary widely, with Africa requiring around $2.5 trillion, Asia-Pacific needing $3.2 trillion, and Latin America demanding $168 billion.

Some nations, including Switzerland, Canada, and the United States, have suggested expanding the list of contributors to the climate finance pool, pushing for emerging economies with high emissions and incomes to also share the burden. However, India has made it clear that the financing should remain the responsibility of developed nations, as stipulated in the Paris Agreement.

Furthermore, India reaffirmed the importance of the Paris Agreement's provisions, specifically the need for clarity in the definition of climate finance. This would ensure that there is transparency and accountability in the provision of financial support. The Standing Committee on Finance has been working towards creating a meaningful definition, and India has expressed the need for further efforts to finalize it.

The $100 billion commitment, although delayed until 2022, has fallen short of expectations. Reports from the OECD claim that developed nations mobilized $115.9 billion in 2022, but there is growing skepticism regarding the methodology behind these numbers. According to organizations like Oxfam, the actual figure may be much lower, in the range of $27.9 to $34.9 billion.

Looking ahead, India is calling for the full mobilization of climate finance to support the urgent needs of developing countries, as climate-related disasters continue to devastate vulnerable populations across the Global South. The Nationally Determined Contributions (NDCs), which nations are expected to update ahead of COP30, will be crucial in setting the stage for achieving these ambitious financing goals.

In conclusion, India’s stance at CoP29 serves as a reminder of the disparities in climate action commitments and the urgent need for a more equitable distribution of climate finance. To meet global climate goals and ensure that developing nations can effectively address both mitigation and adaptation, developed countries must fulfill their promises of substantial financial support. Transparency, accountability, and equity must be at the core of the global climate finance agenda, making CoP29 a critical juncture in shaping the future of climate action.

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