During the discussions on the latest draft texts at COP29 in Baku, India made its position clear. The country emphasized the need for a $1.3 trillion mobilization of climate finance, with $600 billion coming through grants and grant equivalent resources. India's environment secretary, Leena Nandan, articulated the stand, stating that the New Collective Quantified Goal (NCQG) is crucial for financial support from developed to developing countries on grant and concessional terms to meet ambitious nationally determined contributions (NDCs). She highlighted that the absence of adequate means of implementation would severely impact actions.

Key Points on Climate Finance

Structure and Quantum

The document must be specific about the structure, quantum, quality, timeframe, access, transparency, and review of the climate finance. It is essential to ensure that the financial support is adequate to drive climate actions. 1: India firmly believes that a clear and detailed framework for climate finance is necessary. The specific details regarding the structure and quantum will help in effectively allocating resources and ensuring that the developed countries fulfill their obligations. This will enable developing countries to implement their NDCs and make significant progress in addressing climate change. 2: Transparency in the process is also crucial. By having clear guidelines and mechanisms for access and review, it will be possible to monitor the flow of funds and ensure that they are used effectively. This will build trust between countries and promote greater cooperation in the fight against climate change.

Conditional Elements

The expansion of the contributor base and the reflection of conditional elements such as macroeconomic and fiscal measures are important aspects. However, suggestions for carbon pricing and focusing on private sector actors for scaling up resource flows as investments are contrary to the mandate for the goal. 1: While expanding the contributor base is a positive step, it is essential to ensure that the conditional elements are properly considered. Macroeconomic and fiscal measures play a significant role in determining a country's ability to contribute to climate finance. These factors need to be taken into account to ensure a balanced and sustainable approach. 2: Regarding carbon pricing and private sector involvement, India believes that these should be implemented in a manner that does not undermine the core objective of providing adequate finance to developing countries. The focus should remain on ensuring that the financial resources are available to support climate actions on the ground.

Country-driven Actions

NCQG is not an investment goal. Climate actions by developing countries should be country-driven, in line with their circumstances and priorities. 1: Each developing country has its unique set of circumstances and priorities. Therefore, it is essential that climate actions are tailored to meet these specific needs. India's NDCs are based on its national context and sustainable development goals, and the same should apply to other countries. 2: By allowing countries to drive their own climate actions, it promotes ownership and accountability. This approach ensures that the efforts are sustainable and have a meaningful impact on addressing climate change at the local level.

Shift in Focus

COP29 initially focused on enablement through NCQG, but now the focus is shifting to mitigation. India cannot accept any attempts to deflect the focus from finance to mitigation. 1: While mitigation is important, it should not overshadow the need for adequate finance. Developing countries have submitted their NDCs and will continue to do so based on their national circumstances and sustainable development goals. The focus should remain on ensuring that the necessary financial resources are available. 2: Shifting the focus away from finance can lead to a lack of implementation on the ground. It is crucial to maintain a balance between mitigation and finance to ensure that climate actions are effectively carried out.

Disappointment and Call for Balance

India feels disappointed by the continuous shift in focus from finance to mitigation. It is time for balance in the climate discourse. 1: The Paris Agreement emphasizes the importance of common but differentiated responsibilities and respective capabilities (CBDR-RC) and equity considerations. Adequate finance is essential to support mitigation actions and achieve the desired climate goals. 2: Without a proper balance, the climate discourse may become meaningless. It is crucial to address both mitigation and finance simultaneously to make a real impact on climate change.