Posted: Thu, 10/27/22 – Updated 12:36AM
Despite lofty promises, Western nations have failed to make up for decades of damage to the environment. Undoubtedly, the issue of climate finance will be at the forefront of deliberations as countries prepare for another round of the UN Climate Conference (COP27) in Sharm el-Sheikh, Egypt, early next month. The success of climate negotiations and the energy transition will depend on climate finance in industrialized countries. Ambitious climate targets set by India and other countries can only be achieved with sufficient funding. According to official calculations presented to parliament a few years ago, India needs at least $2.5 trillion to meet its 2030 climate goals. By 2030, this will translate to $170 billion per year. But the updated NDC (Nationally Determined Contribution) is more ambitious and requires more funding. According to a report by the International Financial Services Authority’s Committee of Experts on Sustainable Finance, India will need $10 trillion in investment by 2070 to achieve its net-zero emissions target. It is clear that without any real progress on the financial front, the climate will not be negotiated fairly. India’s arguments at the upcoming summit will continue to revolve around technology and climate finance shifting from developed to developing regions. In 2009, rich countries agreed to provide $100 billion in climate finance a year by 2020, but fell short of the goal. However, they have been pressuring developing countries to raise NDC ambitions or achieve “net zero” (reducing greenhouse gas emissions to zero) sooner rather than later.
Developed countries, which have historically contributed to most of the emissions that contribute to rising temperatures and climate change, must take on the responsibility of helping developing countries financially by establishing offsetting mechanisms. India’s position on loss and damage from climate change is that developed countries contribute more to the environmental damage and resulting disasters in developing countries, especially island nations. As far as developing countries are concerned, they are already doing what they can to achieve climate goals without climate finance. Hopefully COP27 will help bridge the trust deficit. If temperature rise is to be limited to 1.5°C, the world must achieve net zero carbon emissions by 2050. Achieving climate goals involves a huge set of challenges for India, as it is one of the countries that still relies on coal for its energy needs. To switch to clean energy, the country must invest heavily in research and development and develop clear environmental plans for areas such as infrastructure, transportation, industrial production and forestry. India needs to explore ways to ensure financial and technological security to finance its massive transition to clean energy.
