COP29: India pitches for 'no strings attached' climate finance, new draft text fails to address key concerns

BAKU: With negotiations at COP29 on the crucial issue of climate finance heading for an intense round of talks in the backdrop of a new draft decision text, India has asked developed countries to commit to provide and mobilise at least $1.3 trillion every year till 2030 through grants, concessional finance and non-debt-inducing support, without subjecting developing nations to ‘growth-inhibiting conditionalities in the provision of finance’. It also emphasised that the support must cater to the ‘evolving needs and priorities of developing countries’

The heavily bracketed draft text was released on Friday without actually addressing the concerns of developing countries. Though the number of pages of the new text was reduced from 34 to 25 by removing inconsequential options, the key points of concerns of the global south continue to be there without any acceptable changes.

India through its intervention during high-level meeting on the issue also linked the developing countries’ move to update their climate action targets next year with the climate finance commitment of rich nations, saying such a scenario (adequate financial support) is “vital for advancing towards COP30, where all Parties (countries) are expected to submit their updated Nationally Determined Contributions (NDCs)”. The remark is a clear message to global north (rich nations) that the developing countries won’t be able set ambitious emission cut targets unless provided with adequate and ‘no strings attached’ finance.

India put across its point, in sync with demand of developing countries, through the intervention on Thursday on behalf of the Like Minded Developing Countries (LMDC) representing over 20 nations during climate negotiations. Earlier, the G77 plus China group, representing over 130 developing countries, had given a similar pitch in the submission, making it clear that anything less than $1.3 trillion annual finance flow from developed to developing countries for climate action may not be acceptable to the global south.

Making the intervention, Naresh Pal Gangwar, environment ministry’s additional secretary and India’s lead negotiator at C0P29, also reiterated the developing countries’ consistent stand on the negotiation process and climate finance, indicating that the dilution of the principles of the UNFCCC and its Paris Agreement will not be acceptable to the global south keeping in view the historical responsibilities of the rich nations.

He also pitched for having a definition of climate finance and made it clear that the new post-2025 climate finance - called the New Collective Quantified Goals (NCQG) - cannot be changed into an investment goal when it is a unidirectional provision and mobilisation goal from the developed to the developing countries. “The Paris Agreement is clear on who is to provide and mobilise climate finance – it is the developed countries,” said Gangwar, seeking to put to rest the discussion around expanding the donor base beyond rich nations.

“The context of different national circumstances, sustainable development goals and poverty eradication, particularly with respect to the Global South, should not be lost sight of. These principles must form the basis for a strong outcome on the NCQG at COP 29,” he said in his intervention.

Calling out the rich nations' failure on their previous promise, Gangwar reminded the gathering that the developed countries committed to jointly mobilise $100 billion per year by 2020, a deadline extended to 2025. "While the $100 billion target is already inadequate compared to the actual requirements of developing countries, the real amount mobilised has been even less encouraging," he said.

“The $100 billion was committed in 2009, 15 years ago. We have a common time frame for expressing ambitions every five years. There is a similar need in terms of climate finance. We are very hopeful that developed countries will realise their responsibility to enable enhanced ambitions and make this CoP29 a success”, said Gangwar.