Hindu Editorial Analysis : 5-December-2024
The UN Climate Change Conference (COP29), held in Baku, Azerbaijan, ended with a focus on climate finance, particularly the New Collective Quantified Goal (NCQG). However, the outcomes were controversial, especially concerning the financial commitments required to combat climate change.
Background: The Need for Climate Finance
Climate finance emerged from the realization that developing countries, despite contributing the least to global greenhouse gas emissions, face the most severe impacts of climate change. The Intergovernmental Panel on Climate Change (IPCC) has emphasized that stronger global commitments are essential to limit global warming to 1.5°C. The goal of climate finance is to provide developing nations with the necessary resources to implement their Nationally Determined Contributions (NDCs) and adaptation plans.
However, current policies are on track to lead to a 3.1°C rise in global temperatures, far above the target set by the Paris Agreement.
Key Objectives of the NCQG
The NCQG aims to address the financial gaps in global climate action. Its main objectives include:
- Empowering Developing Countries: Providing financial support for clean energy, adaptation, and climate-resilient infrastructure.
- Accelerating Climate Action: Unlocking funds for ambitious climate actions in developing countries aligned with the Paris Agreement.
- Promoting a Just Transition: Ensuring a transition to a low-carbon economy, creating jobs, and protecting vulnerable communities.
- Boosting Global Cooperation: Encouraging international collaboration between developed and developing countries.
The Significance of the NCQG
Finance is crucial for accelerating the adoption of cleaner alternatives. The NCQG was designed to overcome the shortcomings of previous climate finance pledges, like the $100 billion annual commitment made at Cancun in 2010. It aims to establish more transparent and accountable financial goals for post-2025 climate action.
Outcomes and Concerns from COP29
COP29, dubbed the “Finance COP,” aimed for a significant breakthrough on the NCQG but failed to align with principles of equity and climate justice. Some key concerns include:
- Financial Targets: Developing countries push for higher contributions from high-income nations, such as the US and the EU.
- Equity and Responsibility: The principle of Common But Differentiated Responsibilities (CBDR) remains a point of contention, with developing countries urging developed nations to shoulder a larger financial burden.
- Types of Finance: There is disagreement over the inclusion of private finance in the NCQG, as well as ensuring that funds are new and additional.
- Allocation and Utilization: Balancing funding between mitigation (reducing emissions) and adaptation (building resilience) is critical.
- Sufficiency of Funds: The target of $300 billion annually (2025-2035) was criticized as inadequate, especially when developing countries need about $1.3 trillion annually.
- Implementation Barriers: High costs and limited fiscal space in developing countries complicate the effective use of climate finance.
India’s Position on Climate Finance
At COP29, India emphasized that developed nations should fulfill their financial commitments and provide at least $1.3 trillion annually until 2030. This demand is based on the CBDR principle, which acknowledges the varying capacities of countries in addressing climate change. India also contributes to climate finance for other developing nations, demonstrating its commitment to global action. However, green finance for India remains slow and insufficient.
India’s Domestic Efforts and Future Goals
India has taken several steps to tackle climate change domestically. In the Union Budget 2024-25, India introduced a climate finance taxonomy to attract investments and prevent greenwashing. The government allocated ₹19,100 crore to renewable energy initiatives and ₹5,790 crore under FAME Phase-II to promote electric vehicles. India aims for net-zero emissions by 2070, and as of October 2023, 43.81% of its total installed power capacity comes from non-fossil fuels.
Why In News
The recent UN Climate Change Conference (COP29) held in Baku, Azerbaijan, concluded with significant yet contentious outcomes, particularly regarding the New Collective Quantified Goal (NCQG) for climate finance, as negotiations failed to deliver clear, equitable financial commitments to address the pressing needs of developing countries most affected by climate change.
MCQs about Understanding Climate Finance and the NCQG at COP29
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What was the primary focus of the discussions at COP29 in Baku, Azerbaijan?
A. Green technology innovations
B. International trade policies
C. New Collective Quantified Goal (NCQG) for climate finance
D. Space exploration initiatives
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What is the principle of “Common But Differentiated Responsibilities (CBDR)” that was emphasized at COP29?
A. All countries must contribute equally to climate finance
B. Developing countries should bear the most responsibility for climate action
C. Developed countries should contribute more to climate finance due to their historical emissions
D. Countries with higher emissions should reduce them first
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What was one of the major concerns raised by developing countries at COP29 regarding the NCQG’s financial targets?
A. The target amount of $300 billion annually is too high
B. There was a lack of transparency in how funds would be allocated
C. The target of $300 billion annually is insufficient compared to the $1.3 trillion required
D. The funds should only be used for mitigation, not adaptation
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How is India contributing to global climate finance, according to the essay?
A. India is not contributing to international climate finance
B. India is pushing for more funding from other developing countries
C. India has been providing climate finance to other developing nations
D. India is primarily focused on reducing emissions without global cooperation
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