India Demands USD 1.3 Trillion for Climate Finance

New Delhi, Nov 14 (PTI) India Thursday said developed countries must commit to providing at least USD 1.3 trillion each year until 2030 to developing nations and that the new climate finance package, being negotiated at the UN climate conference in Azerbaijan, cannot become an 'investment goal'.

Speaking on behalf of Like-Minded Developing Countries (LMDC) at the sixth High-Level Dialogue on Climate Finance at the UN climate conference in Baku, Azerbaijan, India emphasized that this support for developing countries to cope with the warming world should come through grants, concessional financing, and non-debt incurring aid.

It said the new climate finance package or the New Collective Quantified Goal (NCQG) -- the top priority for this year's UN climate summit -- should align with the evolving priorities of developing countries and be free from restrictive conditions that could hinder their growth.

India is the world's fastest developing major economy with a per capita emissions of just 2.9 tonnes of CO2 equivalent (tCO2e), far below the global average of 6.6 tCO2e.

"Developed countries need to commit to providing and mobilizing at least USD 1.3 trillion every year till 2030 through grants, concessional finance and non-debt inducing support," the Indian negotiator, Naresh Pal Gangwar, said.

The joint secretary in the Union Ministry of Environment and Forest and Climate Change said that this support is vital for advancing towards COP30 at Belem in Brazil where all parties are expected to submit their updated Nationally Determined Contributions or national climate plans.

"Achieving this outcome will set a solid foundation for meaningful progress in our global climate efforts," Gangwar said.

India also said that "NCQG cannot be changed into an investment goal" when it is a unidirectional provision and mobilization goal from developed to developing countries.

"The Paris Agreement is clear on who is to provide and mobilize climate finance -- it is the developed countries," it said.

India said that bringing in elements of any new goal that is outside the mandate of the UN climate change convention and its Paris Agreement is "unacceptable".

"We do not see any scope for renegotiation of the Paris Agreement and its provisions."

Developing countries argue that, under the UN climate change convention and the Paris Agreement, it is the responsibility of developed nations to mobilise climate finance for them.

However, developed countries are pushing for a "global investment goal" that would draw funding from a variety of sources, including governments, private companies and investors.

Terming developed countries' performance on their financial and technological commitments "disappointing", India said the USD 100 billion target, promised in 2009, was already inadequate and has repeatedly been unmet.

It said that there is no clarity on what developed countries are actually counting as climate finance.

"Transparency and trust are the backbone of any multilateral process... A clear definition of climate finance in line with the provisions of the UNFCCC and its Paris Agreement will promote transparency and is vital for furthering constructive deliberations and building trust," India said.

At COP15 in 2009, developed countries pledged to mobilise USD 100 billion per year to help developing nations cope with climate change by 2020. However, this target was only met in 2022, with loans accounting for around 70 per cent of the total climate finance provided.

NCQG is set to replace the USD 100 billion target next year.