THE 29th Conference of Parties (COP29), held recently in Baku, Azerbaijan, brought global attention to the critical issue of climate finance. The summit emphasised the urgency of mobiliing significant financial resources to combat climate change effectively, especially in emerging markets and developing economies (EMDCs). However, what stood out was not just the tardy deal on climate finance (with the developed countries putting nothing on the table), but also the manner in which it was ‘gavelled’ without any consensus. India rightly called the final declaration as an “optical illusion” – a goal of $300 billion in annual transfers to the developing world, against $100 billion today (a target laid down in 2009 but almost never met) is all but farcical.
In addition, India also stressed the need for unrestricted access to green technologies, urging developed countries to remove barriers such as Intellectual Property Rights. The Indian delegation reiterated the principle of Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC), demanding that developed nations take the lead in reducing emissions.
The COP29 highlighted India’s dual focus on holding developed nations accountable for past and future commitments while ensuring equitable and sustainable pathways for developing economies. The conference served as a critical reminder of the financial and collaborative efforts needed to address the climate crisis effectively.
Per capita, the world’s most populous country emits fewer than two tonnes of carbon a year, less than half the global average. If its growth follows the same pattern as China’s, which emits at twice the global average, the battle to save the climate will be lost. Any viable carbon credit market, therefore, must ensure investment flows into mitigation efforts on the subcontinent – almost regardless of what happens elsewhere. For their part, Indian policymakers realise that tradeable carbon credits represent an opportunity that the country’s beleaguered construction and manufacturing sectors can’t afford to miss.
It is unfortunate that the yearly climate talks have not yielded much result. The UN Environment Programme assessment showed that several major economies, including the US, Canada, Japan, Australia, China and Saudi Arabia, are not on course to meet their 2030 emission reduction targets or Nationally Determined Contributions (NDCs). However, countries like India are projected to meet their NDCs though their overall emissions are increasing as they expand energy use to support basic development needs.
Overall, the global scenario is far from encouraging and targets set at the Paris agreement are likely to be breached by the end of this year itself as the final agreement at the Baku conference was rather disappointing. Human-caused global warming has already breached 1.50C limit over temperature levels in the 1700s, widely viewed as critical to avert the most devastating impacts of climate change. A recent study indicated that human-induced average global temperature rise had breached 1.490C by 2023-end and 1.530C presently.
India played a pivotal role in advocating for equitable climate solutions, demonstrating leadership through its domestic policies and international stance. India also made its stand clear on contentious issues such as carbon trading, exposing critical flaws in the system, and divisions among participating countries regarding their commitments and priorities. This approach recognises the historical responsibilities of industrialised nations and calls for an equitable redistribution of resources to support vulnerable economies.
