Developing nations push for climate finance, seek $1 trillion annually
ECONOMY & POLICY

Developing nations push for climate finance, seek $1 trillion annually

At the 29th Conference of the Parties (COP29) in Baku, India has called for a robust climate finance framework with an annual target of $1 trillion from developed nations to address the diverse climate needs of developing countries. A report, “Road to Baku: The New Collective Quantified Goal on Climate Finance,” highlights India's push for climate financing aligned with each country’s Nationally Determined Contributions (NDCs) and National Adaptation Plans (NAPs).

India and other Global South nations have stressed that public funding, grants, and concessional loans are essential for equitable climate finance. India pointed out that only 3% of global climate finance reaches the least developed countries, and about 15% flows to emerging economies. The new financing goal, India argued, should rectify this imbalance with a focus on predictable, grant-based support to build climate resilience in vulnerable regions.

India, backed by other developing nations, advocates that financing should come primarily from developed countries to minimise debt on developing economies. The proposed NCQG framework would prioritise grants, concessional loans, and innovative options like debt-for-climate swaps, while ensuring transparency and alignment with national development goals.

Supporting India’s stance, the Alliance of Latin America and the Caribbean (AILAC) suggested setting separate NCQG targets for grant-based and concessional financing, as well as finance mobilised under the Paris Agreement, to bolster both mitigation and adaptation.

India has proposed a 10-year NCQG financial cycle with reviews every five years, balancing immediate needs with long-term resilience planning. Like-minded Developing Countries (LMDC) reiterated the importance of equity and Common but Differentiated Responsibilities (CBDR), emphasising that developed nations' financial commitments should reflect their historical contributions to global emissions.

(ET)

At the 29th Conference of the Parties (COP29) in Baku, India has called for a robust climate finance framework with an annual target of $1 trillion from developed nations to address the diverse climate needs of developing countries. A report, “Road to Baku: The New Collective Quantified Goal on Climate Finance,” highlights India's push for climate financing aligned with each country’s Nationally Determined Contributions (NDCs) and National Adaptation Plans (NAPs). India and other Global South nations have stressed that public funding, grants, and concessional loans are essential for equitable climate finance. India pointed out that only 3% of global climate finance reaches the least developed countries, and about 15% flows to emerging economies. The new financing goal, India argued, should rectify this imbalance with a focus on predictable, grant-based support to build climate resilience in vulnerable regions. India, backed by other developing nations, advocates that financing should come primarily from developed countries to minimise debt on developing economies. The proposed NCQG framework would prioritise grants, concessional loans, and innovative options like debt-for-climate swaps, while ensuring transparency and alignment with national development goals. Supporting India’s stance, the Alliance of Latin America and the Caribbean (AILAC) suggested setting separate NCQG targets for grant-based and concessional financing, as well as finance mobilised under the Paris Agreement, to bolster both mitigation and adaptation. India has proposed a 10-year NCQG financial cycle with reviews every five years, balancing immediate needs with long-term resilience planning. Like-minded Developing Countries (LMDC) reiterated the importance of equity and Common but Differentiated Responsibilities (CBDR), emphasising that developed nations' financial commitments should reflect their historical contributions to global emissions. (ET)

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