India calls on developed economies to commit $1 trillion annually to climate finance, emphasising global collaboration to address the urgent needs of developing nations
India has called on developed economies to commit a minimum of $1 trillion annually in climate finance for developing countries to meet national and global climate objectives. The appeal was presented in a submission known as the New Collective Quantified Goal (NCQG) to the United Nations Framework Convention on Climate Change.
The proposal emphasises the necessity of developed countries providing primarily grants and concessional finance. The issue is anticipated to be deliberated at COP29 in Azerbaijan in November.
Developing nations have long asserted their inability to achieve climate goals without substantial international financial support. India's proposal underscores that the most severe impacts of climate change are disproportionately felt in developing and economically challenged countries, lacking the financial means to recover and fortify resilience against extreme weather events and natural disasters.
A report by the Climate Policy Initiative revealed that climate finance flows exceeded $1 trillion in 2021, marking the first time since adopting the Paris Agreement in 2015. However, the report emphasises that these flows must increase by at least five times annually by 2030 to avert the most detrimental effects of climate change. While most climate finance still originates from public sources, future growth is anticipated to derive significantly from private contributions.
The report further exposes geographical disparities in climate finance distribution. The ten countries most severely impacted by climate change between 2000 and 2019 received less than 2 percent of the total climate finance.
Dr. Barbara Buchner, Global Managing Director at Climate Policy Initiative, acknowledged the positive development of surpassing the $1 trillion threshold but highlighted that it represents only 1 percent of global GDP. The equitable climate finance distribution discussion will likely remain central to international climate negotiations.