India is a leading voice in discussing climate finance at UNFCCC and other global forums. It has often been pointed out that the claims made by developed countries about nearing their financial contributions’ goals are overstated.
According to India, the climate finance that has currently been put forth is considerably less than what’s claimed.
India is pushing for a clear-cut definition of climate finance. It emphasises the need for significant, swift, and broad-reaching delivery of funds.
India’s Stand On Climate Finance
India’s stance is that climate finance should be separate from overseas development assistance, and should primarily be grants, not loans. It believes that the distribution of these funds should be equally balanced between mitigation efforts and adaptation strategies.
- India is championing the cause of climate finance on behalf of the Global South, an enduring issue that has yet to be resolved over the course of many years. Whether it pertains to Nationally Determined Contributions (NDCs) or the commitment to achieve net zero emissions, the importance of this matter cannot be overstated.
- India is leading the charge in the battle against climate change. Moreover, when it comes to climate finance, India has the potential to shape global perspectives. In order to facilitate the flow of capital from the Global North to climate investments in developing nations, finding a clear pathway is imperative.
- India is actively engaged in combating climate change and promoting fairness and collective responsibility. As part of its current G20 leadership, India is spearheading the promotion of green finance, particularly benefiting the Global South.
- Climate change needs to be addressed globally, with all nations using their fair share of the world’s carbon budget. India, so far, has used less than its fair share.
- The global emission growth rate can’t be compared with India’s rate due to its status as a developing country, focused on sustainable development and poverty eradication.
- Based on equity and the principle of common but differentiated responsibilities, as enshrined in the UNFCCC and the Paris Agreement, India’s emissions can increase until global emissions reach their peak, after which they should start to decline.
- It’s important to note that India’s emission growth starts from a lower base compared to the global average.
- The crucial measure of a country’s responsibility for emission increase is its contribution to cumulative emissions, not just the rate of growth or decline.
Also Read | Should India Pursue The Idea Of Leading The Global South?
Common But Differentiated Responsibilities and Respective Capabilities (CBDR-RC)
India promotes the idea of fairness and the principle of Common But Differentiated Responsibilities and Respective Capabilities (CBDR-RC). This means that while all nations must work to combat climate change and prevent environmental harm, not all countries share the same level of responsibility. The reason for this is that countries have different abilities to handle these challenges. The CBDR-RC idea was officially recognised at the 1992 Earth Summit in Rio de Janeiro, under the United Nations Framework Convention on Climate Change (UNFCCC).
How Will Climate Fund Assist India?
- India constantly experiences climate variability due to its diverse topography, which is further intensified by the growing emissions of carbon and greenhouse gases.
- Industrialisation, urbanisation, deforestation, forest fires, and carbon emissions are leading threats to India’s natural ecosystem.
- Climate finance becomes a crucial solution to these climate crises, especially considering that the loss and damage fund primarily targets developing countries.
- As a country largely dependent on agriculture, India stands to greatly benefit from the loss and damage fund in facilitating the transition to low carbon growth in agriculture.
- Despite the agricultural transition being left out of its Nationally Determined Contributions (NDCs) to avoid burdening farmers, the formation of this fund will provide necessary aid for farmers.
- At the G20 presidency, India has strongly advocated for green finance for developing countries as highlighted in its Economic Survey presented in Parliament on January 31, 2023, arguing the dilemma developing nations face in balancing developmental needs and combating climate change.
Economic Survey 2022-23: Key Takeaways
Chapter seven of the 2022-23 Economic Survey focuses on climate change. The main points are:
- India emphasises the need for finances in the battle against climate change.
- Despite limited resources, India has voluntarily started taking steps to combat climate change.
- Developed nations should provide more support, like finances, technology transfers, and capacity-building, if they want India to take more ambitious climate actions.
- Developing countries face difficulties in accessing funds for their climate initiatives.
- Developed countries seem unwilling to provide enough resources or additional capital to international organisations, limiting their ability to lend or mobilise more resources for climate action.
- India advocates green finance for developing countries. This stance is even reflected in its Economic Survey, aligning with its current G20 presidency.
Global Power Politics And Energy Security
The Economic Survey 2022-23 reveals the following key points:
- The ongoing Russia-Ukraine conflict has caused European nations to turn to coal to ensure their energy supply, sidelining larger climate objectives.
- The Survey notes that energy security is once again becoming a primary concern for nations, not only for developed but also for developing economies.
- Issues hindering climate initiatives are also identified, such as the restricted availability and processing of Rare Earth Elements (REE) and Critical Minerals (CM). These elements are essential for renewable energy and green technologies.
- The Survey warns that a globally synchronised shift to non-fossil fuels may be challenging if there is insufficient availability of REE and CM.
- It draws a parallel between these elements and crude oil, which has been a significant factor in global power politics for the past half-century.
Greenhouse Gas Emissions By India
India, as part of the UNFCCC, regularly submits its National Communications (NCs) and Biennial Update Reports (BURs). These reports include the national inventory of Greenhouse Gas (GHG) emissions. Here are the main points from India’s third BUR, which was submitted in February 2021:
- The total net GHG emissions for 2016 were 2.5 billion tonnes CO2e.
- The per capita emissions of India were 1.96 tCO2. This is less than one third of the average global per capita GHG emissions.
- India’s overall emissions in 2016 made up only around 5 per cent of global emissions.
- Despite housing around one-sixth of the world’s population, India contributed just about 4 per cent to the global cumulative emissions from 1850 to 2019.
India’s Climate Financing Initiatives
- The 2022-23 Union Budget of India announced sovereign green bonds. This is part of India’s efforts to counter climate change.
- The money from these bonds will be used in public sector projects aimed at reducing carbon emissions in the economy.
- So far, most of the financing for India’s climate initiatives has come from domestic resources. This includes government budgets and a combination of market mechanisms, fiscal instruments, and policy interventions.
- According to India’s Third Biennial Update Report (BUR) to the UNFCCC in February 2021, the amount of domestically mobilised funds is significantly more than the total international funding received for climate actions.