COP 28: As the international community gears up for the 2023 Global Stocktake, India staunchly advocates for climate justice, the promise of green growth, and addressing the devastating losses due to climate events
The discourse on climate change has evolved dramatically. We're no longer debating its reality but fervently seeking ways to mitigate its effects.
This July, data from the World Meteorological Organisation highlighted an alarming trend, recording the hottest week on record and surpassing the critical 1.5 degrees Celsius threshold.
Against this backdrop, India, playing a pivotal role in G20 discussions and preparing for the pivotal COP28 in November, grapples with a reported surge in the financing gap for Sustainable Development Goals (SDGs)—from $2.5 trillion to a staggering $4 trillion.
This staggering sum raises a critical question: Who will bridge this financial chasm?
Enter ‘Climate Finance’, envisioned to amass funds from a plethora of sources, both public and private, to tackle the diverse challenges posed by climate change.
Developed nations, in a hopeful promise at COP15, vowed to mobilise $100 billion annually by 2020 to fuel climate action in developing countries. This commitment was reiterated at COP21. Yet, by the end of 2020, the actual fund mobilised fell short at a mere $83 billion.
While this funding gap is alarming, another pertinent question emerges: Are our current financial allocations creating the desired ripple effect?
Modern climate finance seems stuck in 'carbon tunnel vision', with an overwhelming emphasis on carbon-centric return on investment (ROI). In this myopia, vital factors like biodiversity, water security, and socio-economic impacts often fall by the wayside.
This myopic approach results in glaring mismatches:
● Sector Mismatch: A majority of climate finance is channelled towards mitigation, funnelling funds into sectors like energy and transport, while crucial areas like industry, mining, and construction often get overshadowed.
● Geographical Mismatch: Low-income nations, although facing the harsh brunt of climate change, received a mere half of 2020's climate finance.
● Instrument Mismatch: Loans dominated the climate finance scene in 2020, exacerbating the debt burdens of nations already in economic distress.
India, ever-active in global discussions like the upcoming COP28, remains unwavering in its commitment to a sustainable and resilient future. India's focus isn't merely on mitigation but significantly on adaptation, a testament to its understanding of the multifaceted challenges of climate change.
As the international community gears up for the 2023 Global Stocktake, India staunchly advocates for climate justice, the promise of green growth, and addressing the devastating losses due to climate events.
In a spirit of collaboration and shared knowledge, India remains eager to share its best practises in climate finance, pushing for standardised mechanisms to ensure transparency in global fund flows.
The path forward demands an integrated approach. This means engaging women-centric organisations in the heart of policymaking, mandating projects to actively track gender-based outcomes, and enlisting the expertise of gender specialists and local women leaders in project design and implementation.
In essence, as we navigate the intricate landscape of climate finance, it's paramount to prioritise those most at risk and aim for outcomes that are truly holistic. Addressing the dual challenge of carbon emissions and socio-economic disparities can pave the way for a balanced and resilient world. The obstacles might be immense, but by redefining our approach, we might discover the potent 'climate solution' the world so desperately seeks.
(Satyam Vyas is Founder, Climate Asia, and Neeha Mujeeb is Advisor at Climate Asia.)