India, other developing nations ask developed countries to ramp up quantum of climate finance

“The Standing Committee on Finance (under the climate negotiations) has estimated that resources in the range of $6 trillion to $11 trillion are required till 2030 to meet the targets set by developing countries in their Nationally Determined Contributions (national action plans) and other communications including the Needs Determination Reports. Clearly, the need for climate finance is immense even when the estimates have not completely captured the identified needs especially that for adaptation,” the LMDC group said in a statement.

Attended the Like-Minded Developing Countries (LMDC) Ministerial meeting virtually today ahead of COP27 to be held in Sharm El Sheikh, Egypt.

Requested all nations to join the movement for Mission LiFE launched by PM Shri @narendramodi ji yesterday in Gujarat. pic.twitter.com/oFJg7GGn0p

— Bhupender Yadav (@byadavbjp) October 21, 2022

Having failed to raise the $100 billion per year by 2020, the developed countries have now promised to deliver this amount by 2023. However, by 2025, this amount has to be raised even further, under the provisions of the Paris Agreement. The quantum of this enhanced amount, to be provided by the developed countries, is currently under discussion.

The LMDCs said that not just the quantum but the “quality” of the new funding amount was also important. It added that while the private sector could be roped-in to contribute, the onus was on the developed countries to provide the money.

“The extent of public resources that the developed countries bring in will play a critical role in determining the climate flows. So, it is discouraging to see the focus on private finance alone,” it said.

The LMDCs said borrowing money from the market was not an affordable option for the developing countries, and it would hamper their climate action.

“If ambitious climate targets have to be achieved, these need to be backed by intentions reflected by ambitious, appropriate, and reasonable access to financial resources by developing countries,” it stated.