What’s the news?

• The Paris Pact for People and the Planet signifies a milestone in the global commitment to sustainable development.

Central idea

• June saw more than 100 countries converge in Paris with a shared vision: no nation should be torn between combating poverty and preserving the planet. This led to the establishment of the Paris Pact for People and the Planet, crafted with invaluable insights from India.

A Transformative Shift in Global Investments

• The debate around developed countries’ commitment to furnishing USD 100 billion a year for climate finance from 2020 to 2025 has been heated.
• The target is set to be achieved by 2023.
• France surpassed its share, contributing €7.6 billion in 2022 for climate financing.
• Since 2012, the French Development Agency has invested over €2 billion in India for sustainable ventures.

India’s Role in the Global Sustainable Financial Landscape

• Leadership in Global Forums: India co-chaired the summit for the Paris Pact for People and the Planet.
• Collaboration with France: India and France jointly act to bridge global financial divides.
• G20 Presidency: India led significant progress in sustainable finance discussions under its G20 Presidency.
• Regional Debt Management: India collaborated with the Paris Club for debt restructuring in Sri Lanka.
• Championing Cohesion: India, with France, emphasizes unity and cooperation in the global financial landscape.

Debt Challenges in Developing Nations

• Public Sector Limitations: Public sector financing is not enough to address global challenges.
• Regulatory Impacts: Post-2008 financial regulations may hinder the flow of OECD savings towards non-OECD countries.
• Green Finance Framework: Misunderstandings between developed and developing countries on aligning finance with the Paris Agreement’s objectives
• Debt Vulnerabilities: Many low- and middle-income countries are on unsustainable debt trajectories.

Proposed actions to unlock more private-sector funding

• Reviewing Global Climate Funds: Start an in-depth analysis of global vertical climate funds to make better use of resources and encourage greater cooperation among climate finance ecosystem stakeholders.
• Expanding the Green Finance Framework: Further develop the green finance framework to align the financial sector with the objectives of the Paris Agreement. This entails leveraging private finance to support low-carbon and resilient pathways worldwide, using mitigation costs as a guiding principle.
• Promoting Just Energy Transition Partnerships: Encourage country-led, multi-actor partnerships, such as the Just Energy Transition Partnerships already operational in countries like Indonesia, Vietnam, South Africa, and Senegal, to attract investments for phasing out coal from electricity production.
• Engaging Credit Rating Agencies: Include credit-rating agencies in the reform agenda of multilateral development banks (MDBs) to ensure that these institutions are not penalized due to reforms aimed at enhancing their effectiveness. Rating agencies should consider innovative blended finance schemes and data on defaults, revealing the resilience of projects with multilateral guarantees.

Conclusion

• The global community, with India at its helm, is making strides towards reshaping the financial landscape in favor of sustainable development. Harnessing both the public and private sectors, and with partnerships like the non-French collaboration, there’s hope for a balanced planet where poverty alleviation and environmental preservation coexist.

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What’s the news?

• September 2023 stands out as it recorded a remarkable 1.75-degree Celsius increase compared to the pre-industrial baseline of 1850–1900, making it a month with an unprecedented temperature deviation.

Central idea

• In the relentless march of climate change, 2023 has emerged as a year of unprecedented heatwaves. Each passing month seems to shatter temperature records, leaving us with grim prospects for the remainder of the year. As September, the hottest on record, draws to a close, we must confront the sobering reality that 2023 may become the warmest year ever recorded.

2023: On Track to Be the Warmest Year

• 2023 is poised to claim the dubious distinction of being the warmest year on record. The average temperature for the first nine months of the year already surpasses the corresponding period of 2016, the previous record holder.
• In 2016, the average temperature was 1.28 degrees Celsius higher than pre-industrial times, and 2023 may breach the 1.5-degree Celsius mark for the first time.

Rising Temperatures Predicted

• The remarkable string of record-breaking temperature events in 2023 was not entirely unexpected. Scientists had foreseen this year’s warmth, primarily due to the development of El Niño in the Pacific Ocean.
• While specific events couldn’t be predicted, the overall trend was ominous. Forecasts indicate that the last three months of the year will continue to be warmer than usual.

Record-Breaking Months

• The record-breaking temperatures in September follow a pattern of extraordinary warmth throughout the year. July, in particular, stood out as the warmest month ever recorded, setting a new global monthly temperature high.
• Multiple days in July broke daily temperature records. Preceding this, June claimed the title of the warmest June ever, and February, March, April, and May all ranked among the top five hottest for their respective months.

Lack of immediate solutions

• Despite the alarming rise in temperatures and the string of record-breaking events in 2023, there has been a noticeable lack of immediate policy responses from countries to combat climate change.
• Addressing climate change in the short term is challenging, and there are limitations to what can be done to lower temperatures or prevent future warming events on an immediate timescale.
• Only a global disruption on the scale of the COVID-19 pandemic could bring about significant deviations from the current trend of increasing temperatures.

Way forward: Urgent action is needed

• There is an urgent need for decisive action in response to the unprecedented heatwaves and their associated impacts.
• The world is rapidly approaching critical climate thresholds, including the 1.5-degree Celsius target set by the Paris Agreement.
• The lack of immediate solutions and policy responses to mitigate climate change is a pressing concern.
• Nations need to acknowledge the stark reality of climate change’s relentless advance and take immediate, robust, and meaningful measures to address the crisis.
• Decisive action is required now to prevent irreversible consequences associated with global warming.

Conclusion

• As nations prepare for the annual climate change meeting in Dubai, it is imperative that they acknowledge the stark reality of climate change’s relentless advance. The stock-take exercise must reveal the gaps in global climate action and serve as a wake-up call for more robust and immediate measures.

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Central Idea

• The recently concluded Bonn Climate Change Conference marked a significant milestone in global climate negotiations, setting the stage for the upcoming Global Stocktake at COP28 in Dubai. The outcomes of the Global Stocktake will guide countries in updating and enhancing their climate action plans

Relevance of the topic

• Mobilizing climate finance is crucial to support climate mitigation and adaptation measures.
• Developing countries, particularly those most vulnerable to climate impacts, require financial resources to implement projects that reduce greenhouse gas emissions, build resilience, and adapt to changing climatic conditions.
• Questions on Climate change mitigation efforts, conferences and outcomes have been asked multiple times. Negotiations on Climate finance is often in the headlines.

What is The Global Stocktake?

• The Global Stocktake mandated under Article 14(1) of the Paris Agreement, aims to assess collective progress towards long-term global climate goals, including greenhouse gas reduction, building climate resilience, and securing adequate finance.

key aspects of the Global Stocktake under the Paris Agreement

• Assessment of Progress: The primary purpose of the Global Stocktake is to assess collective progress made by countries in achieving the long-term goals of the Paris Agreement. This includes evaluating the implementation of countries’ nationally determined contributions (NDCs) and assessing the overall effectiveness of global climate actions.
• Review of Mitigation Efforts: The Stocktake examines the mitigation efforts undertaken by countries to reduce greenhouse gas emissions. It evaluates the adequacy and ambition of these efforts limiting global temperature rise to well below 2 degrees Celsius above pre-industrial levels and pursuing efforts to limit the increase to 1.5 degrees Celsius.
• Assessment of Adaptation Measures: The Stocktake also considers the progress and effectiveness of adaptation measures implemented by countries to address the impacts of climate change. It assesses the extent to which countries are building resilience and adapting to the changing climate conditions.
• Evaluation of Climate Finance: It examines the mobilization and allocation of financial resources to support climate actions, particularly from developed to developing countries. The Stocktake reviews progress towards the commitment of developed countries to jointly mobilize $100 billion annually by 2020 to support climate mitigation and adaptation efforts in developing nations.
• Technology Transfer and Capacity Building: The Stocktake reviews the efforts made in technology transfer and capacity-building activities to support developing countries in their climate actions. It assesses the provision of technology, knowledge, and technical assistance to enhance the capabilities of developing nations in implementing climate solutions.
• Transparency and Reporting: Transparency and accountability are integral components of the Stocktake process. The Stocktake ensures that countries provide accurate and reliable information to facilitate an objective assessment of global progress.
• Informing Future Climate Action: It provides guidance for countries to set more ambitious targets in their subsequent rounds of NDCs. The Stocktake also identifies areas where additional efforts and support are required to bridge the emissions gap and accelerate progress towards the Paris Agreement goals.

Outcomes of the Bonn Conference

• Progress on Just Transition Pathways: Negotiators at the Bonn Conference made advancements in the development of ‘just transition pathways.’ The pathways will be further refined and finalized at COP28, with a focus on sectors such as energy and transport.
• Emphasis on Ambitious Emission Reduction Efforts: The Bonn Conference highlighted the need for developing countries to enhance their emission reduction efforts. It emphasized that ambitious actions are crucial for achieving the goal of limiting global temperature rise.
• Integration of Socio-economic Considerations: The conference underscored the importance of integrating socio-economic components into climate strategies. This approach recognizes the specific needs and priorities of each country, allowing for the alignment of low-carbon development pathways with broader sustainable development objectives.
• Review of Climate Finance: The Bonn Conference brought attention to the issue of climate finance. The conference emphasized the need for improved accounting mechanisms and universal metrics to accurately track and allocate climate finance. It also highlighted the importance of involving institutions like the World Bank in climate finance discussions to enhance transparency and accountability.
• Advancement of Mitigation Work Programme: The conference discussed the Mitigation Work Programme, which aims to scale up mitigation efforts in this decade. The work programme aligns with the goals of the Global Stocktake and aims to accelerate global mitigation actions

Challenges in Mobilizing Climate Finance

• Insufficient Funds: One of the main challenges is the insufficiency of funds dedicated to climate finance. The commitment made by developed countries to mobilize $100 billion annually by 2020 for climate finance has not been fully met. Many observers argue that only a fraction of this target has been realized.
• Accounting and Transparency: There is a need for improved accounting mechanisms and transparency in climate finance. Ensuring accurate tracking, reporting, and verification of financial flows for climate action is essential.
• Adaptation Finance Gap: Adaptation finance, which supports efforts to adapt to the impacts of climate change, lags behind mitigation finance. While there is a growing recognition of the importance of adaptation, the provision of financial resources for adaptation projects and programs remains limited
• Complexity of International Financial Flows: The complexity of international financial flows poses a challenge in effectively channeling climate finance to where it is needed most.
• Accountability and Conditionality: The conditionality of climate finance can also be a challenge, as the terms and conditions attached to financial assistance may not always align with the priorities and circumstances of the receiving countries.

Way forward

• Fulfilling Financial Commitments: Developed countries must fulfill their commitment to jointly mobilize $100 billion annually for climate finance, as agreed upon at the 2009 Copenhagen Climate Change Conference. Efforts should be made to ensure that the committed funds are effectively mobilized and channeled.
• Improving Accounting and Transparency: There is a need for improved accounting mechanisms and transparency in climate finance. Developing universally agreed-upon metrics for tracking climate finance will enhance transparency and ensure that financial resources are allocated and utilized effectively.
• Bridging the Finance Gap: While mitigation finance has received significant attention, adaptation finance needs to be prioritized. Developing countries, particularly those vulnerable to climate impacts, require increased financial support to build resilience and adapt to changing climate conditions.
• Mobilizing Public and Private Finance: Mobilizing climate finance requires a combination of public and private sector involvement. Governments should create an enabling environment for private investment in climate-friendly projects by providing policy certainty, risk reduction mechanisms, and incentives.
• Enhancing Technology Transfer: Facilitating the transfer of climate-friendly technologies from developed to developing countries is essential. Developed countries should support technology transfer through financial and technical assistance, capacity building, and knowledge sharing.
• Strengthening International Cooperation: Strengthening international cooperation and collaboration is crucial to mobilize climate finance effectively. Collaboration between governments, international financial institutions, and stakeholders is essential for scaling up climate finance.
• Prioritizing Climate Finance in Global Agendas: Climate finance should be prioritized in global agendas and discussions. Ensuring adequate financial resources for climate action should be a key consideration in international negotiations, such as the Global Stocktake and COP meetings.

Conclusion

• The Bonn Climate Change Conference served as a critical milestone in climate negotiations, setting the stage for the Global Stocktake at COP28. The integration of socio-economic components in climate strategies and the involvement of the World Bank were also highlighted as essential elements in addressing the climate crisis. Moving forward, it is imperative to prioritize equity, justice, and fairness in climate action to ensure a sustainable and resilient future for all

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Central Idea

• The historical responsibility for climate change has primarily rested with advanced economies and their industrialization processes, while the poorer countries of the Global South have made negligible contributions. The Kyoto Protocol acknowledged the principle of “common but differentiated responsibilities,” and the Paris Agreement emphasized voluntary emission targets for countries while requiring wealthier nations to provide financial transfers to developing economies.

Insufficient Climate Finance and Empty Promises by Industrialized Countries

• Inadequate Financial Transfers: Despite the commitment made under the Paris Agreement to transfer $100 billion annually to developing economies for climate change mitigation and adaptation, the actual financial transfers have been far from sufficient. In 2020, out of the $83 billion deposited into the climate finance fund, less than $25 billion was transferred as grants.
• Limited Support for Developing Countries: The Global South, comprising poorer nations, has been disproportionately affected by climate change, despite contributing minimally to the problem. These countries often lack the necessary resources and infrastructure to address the adverse effects of climate change
• Empty Promises: The track record of empty promises regarding the flow of funds to the Global South casts doubt on the credibility of commitments made by wealthier nations. The failure to deliver on financial pledges raises questions about the sincerity and commitment of industrialized countries in addressing climate change and supporting developing economies in their climate action initiatives.
• Impact on Climate Change Mitigation: Insufficient climate finance directly affects global efforts to mitigate climate change. Developing countries require financial resources to invest in clean technologies, renewable energy infrastructure, and sustainable development practices.
• Equity and Climate Justice Concerns: Insufficient climate finance exacerbates existing inequities and injustices. The burden of climate change impacts falls disproportionately on vulnerable communities in developing countries who have contributed the least to the problem.
• Loss and Damage: In addition to mitigation and adaptation efforts, financial support is crucial for addressing loss and damage caused by climate change impacts. Loss and damage refer to the irreversible and long-term damages, including economic losses and the displacement of communities, resulting from climate change.

What is The Carbon Border Adjustment Mechanism (CBAM)?

• The Carbon Border Adjustment Mechanism is a proposed policy measure aimed at addressing the issue of carbon-intensive production methods in other countries. It involves imposing tariffs on imports from countries that are seen as utilizing carbon-intensive practices in their production processes.

The Objectives of the CBAM

• Reducing Emissions: One of the primary objectives of the CBAM is to contribute to the reduction of the European Union’s (EU) emissions. By imposing tariffs on carbon-intensive imports, the mechanism aims to incentivize foreign producers to adopt cleaner and more sustainable production methods.
• Preserving Competitiveness: The CBAM seeks to prevent carbon leakage, which refers to situations where industries move their production to countries with less stringent environmental regulations to avoid higher costs associated with carbon pricing.
• Encouraging Carbon Intensity Reduction: The CBAM aims to motivate targeted countries, particularly major exporters to the EU, to decrease the carbon intensity of their exports. By imposing tariffs on carbon-intensive goods, the mechanism creates an economic incentive for these countries to transition towards cleaner and more sustainable production practices.

Challenges and Legal Implications for Implementing CBAM

• Measurement Challenges: One of the significant challenges of the CBAM lies in accurately measuring the carbon intensity of imported goods. Determining the exact carbon footprint of a product can be complex, especially when considering indirect emissions embodied in inputs or production processes.
• Arbitrary Coverage and Product Selection: Deciding which products and sectors should be included in the CBAM’s coverage can be challenging. The mechanism’s effectiveness heavily depends on selecting the right products that have high carbon exposure and significant trade volumes. The process of determining coverage may involve some arbitrariness and requires careful consideration to avoid unintended consequences and trade distortions.
• Compliance with WTO Rules: The CBAM raises legal implications in terms of compatibility with World Trade Organization (WTO) rules. The mechanism’s unilateral nature, aiming to impose tariffs based on the carbon intensity of production processes, can be seen as a potential violation of WTO principles, including non-discrimination and national treatment.
• Protectionism Concerns: There is a risk that the CBAM could be used as a form of protectionism by imposing tariffs on imports to shield domestic industries from international competition. This can undermine the principles of free trade and create tensions among trading partners. Careful design and implementation of the CBAM are necessary to ensure it does not become a tool for protectionist trade practices.
• Incomplete Global Coverage: The effectiveness of the CBAM could be limited if not implemented globally. As of now, only a few countries have mechanisms in place for pricing carbon. The absence of a comprehensive global approach to carbon pricing and emission reduction may result in uneven playing fields and limited impact on overall global emissions.
• Equity Considerations: The CBAM may have equity implications, particularly for developing countries. While it aims to incentivize carbon intensity reduction, the burden of adjustment falls primarily on countries that may lack resources and capacity to adopt cleaner technologies or transition rapidly.

Way Forward

• Strengthen Climate Finance: Industrialized countries must fulfill their commitments to provide adequate climate finance to developing nations. Increasing financial transfers and grants to support climate change mitigation and adaptation efforts in the Global South is crucial. This includes honoring the $100 billion annual target set under the Paris Agreement and exploring innovative financing mechanisms.
• Enhance Global Cooperation: International collaboration is essential to address climate change comprehensively. Governments, organizations, and stakeholders need to foster dialogue, share best practices, and collaborate on climate initiatives. Multilateral platforms, such UNFCCC, can serve as forums for cooperation, knowledge exchange, and collective decision-making.
• Develop Comprehensive Carbon Pricing Mechanisms: Implementing comprehensive and robust carbon pricing mechanisms can incentivize emission reductions and promote the transition to low-carbon economies. Governments should explore carbon pricing mechanisms at both domestic and international levels, considering factors such as fairness, effectiveness, and economic feasibility.
• Support Technology Transfer and Capacity Building: Developing countries require support in adopting and implementing clean technologies and building their capacity to mitigate and adapt to climate change. Enhanced technology transfer, knowledge sharing, and capacity-building initiatives can empower nations to address climate challenges effectively.
• Promote Equity and Climate Justice: Efforts to combat climate change must prioritize equity and climate justice. It is essential to ensure that the burden of mitigation and adaptation does not disproportionately fall on vulnerable communities and developing countries. Equity considerations should be integrated into policy frameworks, financing mechanisms, and decision-making processes.
• Strengthen International Trade and Climate Governance: The relationship between international trade and climate change needs to be addressed coherently. Collaborative efforts should be made to reconcile trade rules and climate objectives. Strengthening the World Trade Organization (WTO) and exploring ways to integrate climate considerations into trade agreements can foster synergies and avoid conflicts between trade and climate policies.
• Encourage Innovation and Research: Investing in research and innovation is vital to develop and scale up transformative technologies and solutions for climate change mitigation and adaptation. Governments, private sectors, and academia should collaborate to promote research and innovation in clean energy, sustainable agriculture, circular economy, and other climate-related fields.

Conclusion

• While the CBAM attempts to address carbon-intensive production methods and climate finance, it falls short in several areas. The inadequacy of climate finance transfers to the Global South and the history of unfulfilled promises undermines the potential success of future financing initiatives. A more comprehensive and equitable approach is required to effectively combat climate change while ensuring the burden is shared responsibly among nations.

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Central Idea

• In recent weeks, a growing movement has emerged to remove Minister Sultan Al Jaber, the President-Designate of COP28 and CEO of the Abu Dhabi National Oil Company, from his position. As representatives of climate-vulnerable developing nations like Bangladesh and the Maldives and as the leaders of the Climate Vulnerable Forum, underscore the urgency of the climate challenge. They argue that their economies have suffered staggering climate-related losses, amounting to $500 billion in the last two decades alone.

Campaign to Unseat the President-Designate of COP28

• CEO of Abu Dhabi National Oil Company (ADNOC): Sultan Al Jaber serves as the CEO of ADNOC, which is a national oil company. Critics argue that his role in an oil company creates a conflict of interest, as the fossil fuel industry is a significant contributor to greenhouse gas emissions and climate change.
• Concerns about Clean Energy Transition: Some argue that as the CEO of ADNOC, Sultan Al Jaber may not prioritize or advocate for a rapid and ambitious transition away from fossil fuels to renewable energy sources. They believe that his leadership in COP28 could hinder progress in achieving global climate goals.
• Advocacy for Inclusive Approach: Those calling for his removal argue for a more inclusive approach to COP28 leadership, with a focus on engaging a broader range of stakeholders, including voices from climate-vulnerable countries and civil society, to ensure a more balanced representation and decision-making process.
• Conflict of Interest and Lack of Impartiality: The campaign contends that Sultan Al Jaber’s position as the head of ADNOC raises concerns about conflicts of interest and impartiality in decision-making regarding climate policy and the transition to clean energy.

Sultan Al-Jaber’s Contributions in Advancing Clean Energy Solutions

• Leadership in Renewable Energy: Sultan Al-Jaber has played a pivotal role in leading Masdar, a renewable energy company that has made substantial investments in solar and wind projects. Through Masdar’s initiatives, significant progress has been made in expanding renewable energy capacity and reducing dependence on fossil fuels.
• Barakah Nuclear Power Plant: As part of the UAE’s clean energy efforts, Sultan Al-Jaber oversaw the opening of the Barakah nuclear power plant. This facility generates 6 gigawatts of clean power, further diversifying the country’s energy mix and reducing carbon emissions.
• Tripling Global Renewable Energy Capacity: Sultan Al-Jaber, in collaboration with the International Renewable Energy Agency (IRENA), has championed the goal of tripling global renewable energy capacity by 2030. This ambitious target demonstrates his commitment to advancing the transition to clean energy on a global scale.
• Practical Solutions for Clean Energy: Under Sultan Al-Jaber’s guidance, Masdar and IRENA have signed an agreement aimed at tripling global renewable energy capacity. This partnership focuses on implementing practical solutions and driving tangible results in clean energy deployment.
• Advocacy for Clean Energy Investments: Sultan Al-Jaber has been an advocate for attracting investments in clean energy infrastructure. By promoting partnerships with sovereign wealth funds and multilateral development banks, he has sought to secure the necessary financial support for scaling up clean energy projects worldwide.
• Vision for the Abu Dhabi National Oil Company: Sultan Al-Jaber envisions transforming the Abu Dhabi National Oil Company into the Abu Dhabi Clean Energy and Grid Company by 2030. This transition highlights his commitment to steering a fossil fuel-dependent economy towards a cleaner and more sustainable energy future.
• Global Financial Reform: Sultan Al-Jaber has voiced support for global financial reform, including reforms within the International Monetary Fund. His advocacy underscores the recognition that financial systems must align with the goals of combating climate change and promoting sustainable development.

How Debt is posing As a Significant Impediment?

• Unsustainable Debt Burden: Many developing nations, including those represented by Bangladesh and the Maldives, face significant debt burdens that hinder their ability to invest in clean energy infrastructure and climate adaptation measures. These debts often become increasingly unpayable, exacerbated by climate damages caused by emissions originating from other countries.
• Financial Instability: The burden of unsustainable debt creates financial instability, limiting the fiscal capacity of developing nations to allocate resources towards climate-related initiatives. This instability further undermines their ability to attract investments in clean energy and impairs their overall economic development.
• Limited Access to Finance: High levels of debt restrict developing countries’ access to affordable financing for clean energy projects. International financial institutions and private lenders may be hesitant to provide loans or invest in these countries due to their precarious debt situations, leading to a lack of financial resources necessary for transitioning to renewable energy sources.
• Risk Perception: Unsustainable debt levels increase the perception of risk associated with investing in clean energy projects within these countries. Potential investors may view such projects as financially unstable or uncertain, further deterring crucial investment in renewable energy infrastructure.
• Inability to Prioritize Climate Adaptation: Mounting debt obligations divert limited resources away from crucial climate adaptation efforts. Developing countries, particularly those most vulnerable to climate change, struggle to allocate sufficient funding to build resilient infrastructure, enhance disaster preparedness, and implement necessary adaptation measures.
• Need for Collective Approach: The debt problem and its implications for clean energy investment and climate adaptation require a collective approach. Addressing the debt issue at a global level is essential to ensure that developing nations have the necessary financial support and space to prioritize sustainable development and climate action.
• De-risking and Insurance Solutions: Sovereign wealth funds and multilateral development banks (MDBs) can play a significant role in de-risking restructured debts and insuring climate bonds. By providing financial mechanisms that reduce the perceived risk associated with investing in debt-ridden countries, these institutions can unlock clean energy investments and facilitate climate adaptation efforts.
• Global Financial Reform: Tackling the debt impediment also necessitates global financial reform. Reforming international financial systems, including initiatives within institutions like the International Monetary Fund, can address the structural barriers that perpetuate unsustainable debt burdens and hinder sustainable development efforts.

Facts for prelims

The Crucial Role of Finance in Enabling Clean Energy Transitions

• Scaling Up Clean Energy Infrastructure: Adequate financing is crucial for scaling up clean energy infrastructure in both developed and developing countries. Investment in renewable energy projects, such as solar and wind power plants, is essential to transition away from fossil fuels and reduce greenhouse gas emissions.
• Technology Development and Deployment: Finance plays a pivotal role in supporting the research, development, and deployment of innovative clean energy technologies. Investment in research institutions and initiatives facilitates the advancement of technologies like energy storage, carbon capture, and renewable energy integration into existing grids.
• Access to Affordable Financing: Developing countries, in particular, require access to affordable financing options to facilitate their clean energy transitions. International financial institutions, governments, and private investors can contribute by providing loans, grants, and favorable investment conditions to ensure affordability and accessibility of clean energy technologies.
• Climate Adaptation and Resilience: Financial resources are necessary for implementing climate adaptation measures and building resilience against climate change impacts. This includes developing climate-resilient infrastructure, improving disaster preparedness, and supporting vulnerable communities affected by climate-related events.
• Capacity Building and Technical Assistance: Finance is crucial for capacity building initiatives and providing technical assistance to developing countries. This support helps enhance local expertise and knowledge in clean energy project development, management, and operation.
• Mobilizing Climate Finance: Mobilizing climate finance is essential to fulfill the commitments made under international agreements like the Paris Agreement. Developed countries have committed to providing financial assistance to developing countries for mitigation and adaptation efforts, including the Green Climate Fund and other climate finance mechanisms.
• Socially Responsible Investing: Finance plays a role in promoting socially responsible investing, where investors consider environmental, social, and governance (ESG) factors in their investment decisions. By allocating funds to clean energy projects and divesting from fossil fuels, investors can contribute to the transition towards a low-carbon economy.

Way ahead

• Strengthen International Cooperation: Enhance collaboration and dialogue among nations, fostering a spirit of unity and shared responsibility in addressing the challenges of climate change. Strengthen international platforms like the United Nations Framework Convention on Climate Change (UNFCCC) and its Conference of Parties (COP) to facilitate meaningful discussions and decision-making.
• Ambitious and Equitable Commitments: Encourage all nations to enhance their commitments to greenhouse gas emissions reduction in line with the goals of the Paris Agreement. Emphasize the principle of common but differentiated responsibilities, ensuring that developed countries take the lead while providing support to developing nations for their clean energy transitions.
• Mobilize Climate Finance: Scale up financial resources dedicated to climate change mitigation and adaptation, particularly in developing countries. Developed nations should fulfill their commitment to provide $100 billion per year in climate finance, while exploring innovative financing mechanisms and private sector engagement.
• Technology Transfer and Capacity Building: Facilitate the transfer of clean energy technologies from developed to developing countries, accompanied by capacity-building initiatives to enhance local expertise. Encourage knowledge sharing, technology partnerships, and the establishment of research and development centers to foster innovation in clean energy solutions.
• Support Vulnerable Communities: Prioritize the needs of vulnerable communities, particularly those in climate-sensitive regions, by allocating resources for climate adaptation and resilience-building efforts. Ensure that climate finance reaches those most affected and that local communities are actively involved in decision-making processes.
• Mainstream Climate Considerations: Integrate climate considerations into policymaking across sectors, including energy, transportation, agriculture, and urban planning. Foster collaboration between governments, businesses, and civil society to develop and implement climate-friendly policies and practices.

Conclusion

• The leaders representing the most climate vulnerable developing nations urge American and European parliamentarians to embrace inclusivity. Collaborative and united action, with finance at the core, is vital for a successful COP28. Together, we must work tirelessly to save our planet and secure a sustainable future for all.

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Central Idea

• The budget for 2023-24 in India includes some measures towards climate change mitigation, but adaptation has not been given adequate attention. The government needs to adopt a Mission Adaptation to create a supportive ecosystem for all entities to come together and work towards developing locally-sound adaptation solutions.

Climate Change Mitigation Measures

• Allocation for green transition: The budget for 2023-24 in India has allocated funds towards climate change mitigation, with a focus on green growth initiatives targeted at reducing the carbon intensity of the economy such as green mobility, energy efficiency, and the green hydrogen mission announcement.
• Promoting nature based initiatives: Nature-based solutions such as the mangrove plantation initiative and the community-based wetland conservation scheme also promise to have potentially positive impacts in mitigating climate change.

Lack of Attention to Climate Change Adaptation

• Climate change is addressed indirectly: While climate change mitigation has received attention in the budget, climate change adaptation has been addressed only indirectly.
• No measures towards enhancing resilience: The budget does not include measures towards enhancing the resilience of communities and habitations to climate change’s impact, despite India’s high vulnerability to climate change.
• For instance: Measures to account for climate change-induced risks, such as the recent example of Joshimath, do not find explicit mention in the budget.

Funding for Adaptation

• Adaptation has traditionally received far less attention than mitigation in the global climate discourse, resulting in lower funding for adaptation.
• In India, the ratio of funding for climate adaptation to mitigation stands at 1:10. While funding for mitigation is also underfunded, with only 25% of the requirement met, the gap for adaptation stands much higher, at only 7.9% of the needed funds.

Challenges in Funding Adaptation

• Adapting to climate change often requires highly local and nature-based solutions that do not have a classically-measured ROI. Consequently, mainstream, interest-seeking capital flowing into adaptation is scant.
• Climate adaptation has largely remained a publicly-funded endeavor in India, with nearly 100% of the funding for adaptation coming from public sources. International funding has also remained scarce due to the skewed discourse on climate change.

The Need for a Strategic Investment

• Climate shocks are anticipated to get more frequent and severe, and in the absence of resilience-building for communities and habitations, the impact could be devastating.
• The public sector must view resilience building as a strategic priority and actively address this matter.
• Climate adaptation must come to be seen as a strategic investment by the public sector, which it must make in order to climate-proof lives, livelihoods, the environment, and the economy.

Mission Adaptation

• Mission Adaptation is a term used in the context of climate change and refers to the need for a strategic, proactive approach to building adaptive capacity in order to climate-proof lives, livelihoods, the environment and the economy.
• It is a proposed initiative for creating a supportive ecosystem for all entities, including the private sector, non-profits, and civil society, to come together and work towards developing and scaling up locally-sound adaptation solutions in India.
• The idea is to view climate adaptation as a strategic investment by the public sector and to bridge complex challenges faced by society today using the idea of public purpose to guide policy and business activity.

Conclusion

• Given the increasing frequency at which climate-related stress is occurring and is expected to occur, the public sector will remain a crucial contributor to funding for climate adaptation. The government must work towards developing a more systemic understanding of resilience and support efforts aimed at building such an understanding across the ecosystem to make Mission Adaptation a reality.

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Central Idea

• A group of 16 countries has launched a gallant effort to fight the problem of climate change an existential threat to human civilization at the United Nations (UN). Led by Vanuatu an island country in the South Pacific Ocean, the group seeks an advisory opinion from the International Court of Justice (ICJ) on the issue of climate change.

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What is International Court of Justice (ICJ)?

• The ICJ is the principal judicial organ of the United Nations (UN). It was established in 1945 and is located in The Hague, Netherlands.
• It has the authority to settle legal disputes between states and to provide advisory opinions on legal questions referred to it by the UN General Assembly, the Security Council, and other authorized UN bodies.
• The ICJ is composed of 15 judges elected for nine-year terms by the UN General Assembly and the Security Council.
• Its decisions are binding and final, and the court’s role is to settle legal disputes in accordance with international law.

ICJ has two types of jurisdictions: Contentious and Advisory

• Contentious: Contentious jurisdiction refers to the ICJ’s authority to resolve legal disputes between consenting states. Decisions made under contentious jurisdiction are binding
• Advisory:
• Advisory jurisdiction allows the UN General Assembly (UNGA), the Security Council (SC), and other specialized bodies of the organization to request the ICJ’s opinion on a legal question.
• The ICJ’s advisory opinions are non-binding. However, they hold significant normative weight and serve to clarify international law on relevant issues.
• The ICJ’s advisory opinion on climate change can be useful in climate-related litigation at the national level.

Emergence of Vanuatu’s initiative

• Failure to deliver concrete solutions to Climate Change: Notwithstanding the presence of several international legal instruments on climate change such as the UNFCC, the Kyoto Protocol and the Paris Agreement, the international community has fallen short of delivering concrete solutions to the problem of climate change.
• COP-27 Fails to Resolve Differences: The recently concluded 27th UN Climate Change Conference (COP-27) where countries failed to narrow their differences on critical issues such as reducing greenhouse gas emissions. Countries were unable to reach a consensus on meaningful action.
• Vulnerability of Small Island Developing (SID) states:
• SID states such as Vanuatu are most vulnerable to rising temperatures and sea levels.
• Accordingly, in September 2021, Vanuatu launched an initiative, through the UNGA, to seek an advisory opinion from the ICJ to clarify the legal obligations of all countries to prevent and redress the adverse effects of climate change.
• Since then, the initiative has gathered momentum with more than 100 countries backing the idea. Specifically, the draft resolution piloted by Vanuatu seeks answers to the following questions from the ICJ.

The Legal questions

1. What are the international law obligations of countries toward the protection of the climate system from anthropogenic emissions of greenhouse gases for the present and future generations?

• Answer: The ICJ will interpret existing climate change law and use customary international law to fill gaps, including the ‘no-harm’ (states are under an obligation that activities within their jurisdiction do not damage other countries) principle, to clarify the Paris Agreement.

2. What are the legal consequences for states that have caused significant harm to the climate system, the SID states and other people of the present and future generations?

• Answer: Demands for climate reparations are made as part of climate justice, where historically high-emitting rich countries compensate developing countries affected by climate change. The ICJ can provide legal principles for the ‘loss and damage’ fund.

Confusion over loss and damage fund

• Little clarity on funding: At COP-27, it was agreed to establish a loss and damage fund to financially assist vulnerable developing countries. However, there is little clarity on which countries will provide the funding.
• Historical responsibility yet to be determined: Moreover, the connection between funding and the historical responsibility of developed countries in emissions is yet to be determined.

Role of International Tribunal for the Law of the Sea (ITLOS)

• It is not just the ICJ whose advisory opinion is being sought: The Commission of Small Island States on Climate Change and International Law, comprising countries like Antigua and Barbuda and Tuvalu, has sought the advisory opinion of the Hamburg-based ITLOS.
• To determine obligations under UNCLOS: ITLOS has been asked to determine countries’ obligations under United Nations Convention on the Law of the Sea regarding marine pollution, which is linked to ocean warming, sea level rise, and acidification.

Conclusion

• As part of a multi-pronged approach to saving our planet, one should welcome the role of international courts. Developed countries and groupings like the G-20 should support these laudable initiatives of the SID states. Environment and climate sustainability are important themes of G-20. India, as the president of the G-20, should take a lead given its relentless emphasis on LiFE (developing environment-friendly lifestyle) campaign.

Mains Question

Q. What is Loss and damage fund? Discuss the legal questions that Vanuatu seeks to clarify through the ICJ.

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Context

• India’s per capita emissions are relatively low (1.8 tons of CO2e per person), but we are still the world’s third-largest single emitter. India has pledged to get to net zero by 2070. This goal can only be met with urgent actions in this decade, potentially accelerated through India’s recently-assumed G20 presidency.

Current trajectory

• Emissions are set to grow: On its current trajectory, India’s emissions are set to grow from 2.9 GtCO2e a year to 11.8 GtCO2e in 2070.
• Decarbonisation comes with the cost: According to a recent McKinsey report, effective decarbonisation, down to 1.9 GtCO2e by 2070, would require India to spend a total of $7.2 trillion on green initiatives by 2050. This line of sight (LoS) scenario is based on announced policies and expected technology adoption.
• Investment needed: Deeper decarbonisation an accelerated scenario that would reduce emissions to just 0.4 GtCO2e by 2050, or close to net zero would require $12 trillion in total green investments by 2050. Under this scenario, India could create 287 gigatonnes (GT) of carbon space for the world, almost half of the global carbon budget, for an even chance at limiting warming to 1.5 degrees Celsius.

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Memory shot: Net Zero

• Net zero means cutting greenhouse gas emissions to as close to zero as possible, with remaining emissions re-absorbed by oceans/ forests.
• China, US, EU and India contribute 75% of total GHG emissions
• However, per capita GHG emissions for US, EU and China are7,3 and 3 times of India
• India has set target to achieve net zero emissions by 2070.

What India needs to speed up the decarbonization?

• Orderly transition will benefit but the projects are of heavy investments: To take just one example, If India shifted to a predominantly renewable (and hydrogen)-based energy and materials system, it could save as much as $3 trillion in foreign exchange by 2070. While the investment is large, a vast majority of the abatement projects are in the money.
• Investment, regulation and capacity building is necessary: Three-quarters of the buildings, infrastructure, and industrial capacity of India in 2050 is yet to be built. We have a choice to invest in current technologies or to invest futuristically. Futuristic investment will need India to take urgent actions in this decade on regulation, technology development, and on technology adoption to make the right investments.
• Employing the experience in renewable power: In renewable power, the right policies, strong institutions and industrial capabilities built in the last decade are providing India with the base to scale up four to five times in this decade.
• Making electric vehicles competitive in the market: India also has other advantages. For example, its high taxation on automotive fuels translates to an imputed carbon tax of $140 to $240 per tonne of carbon dioxide. This makes electric vehicles competitive against petrol or diesel ones, explaining the recent rapid growth of electric two-wheelers.

Ideas for India’s orderly transition

• Setting up national and structural decarbonisation plans: Set out five-year, 10-year, and 25-year national decarbonisation plans. Policies that enable carbon prices or blending mandates can make the economics viable. Such policies need to be held steady and require coordination across sectors like power, hydrogen and steel. A national decarbonisation plan would enable timely investment decisions.
• Defining a national land use plan and consider using barren lands for renewables: India risks being land-short for its dual goals of growth and decarbonisation. For example, McKinsey estimates that renewable power and forest carbon sinks need 18 million additional hectares of land. India would need to maximise the use of barren land for renewable power, urbanise vertically, improve agricultural productivity, and increase forest density.
• Accelerate compliance with carbon markets: Pricing carbon creates demand signals that accelerate emissions reductions, especially in hard-to-abate sectors. Let’s illustrate this through steel, demand for which could multiply eight times by 2070; right now, much of the new capacity is likely to be added using high-emission coal. With a price on carbon emissions, more expensive green steel becomes competitive against high-emission steel. For example, a carbon price of $50 a ton could make green steel cost competitive by 2030, leading to the possibility of the next 200 million tons of capacity being created through low-emissions technologies.
• Investing in opportunities: Companies can aim to play on the front foot, investing in opportunities like recycling, hydrogen, biomass, electrolysers, rare earths, battery materials and battery making. Some of these opportunities would take time to mature. Meanwhile, companies could invest in opportunities opened up by decarbonisation of other countries, such as exporting green hydrogen derivatives like ammonia.

Conclusion

• To embark on an orderly path to net zero, India needs imagination, realism, determination and a sense of urgency. An orderly transition to net zero could help India decarbonize while creating an engine for growth. We must take steps this decade to set things up, to establish momentum, and to build India right for generations to come.

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Context

• The Methane Alert and Response System (MARS) initiative was launched by the United Nations Environment Programme (UNEP) at the 27th Conference of Parties (COP27) to the United Nations Framework Convention on Climate Change on November 11, 2022. Is it right to say that India not joining the Oil & Gas Methane Partnership is a missed opportunity?

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Methane a Toxic greenhouse gas

• A major greenhouse gas: Methane is the second-most common of the six major greenhouse gases, but is far more dangerous than carbon dioxide in its potential to cause global warming.
• One of major contributor of GHG emissions: Contribution Accounting for about 17 per cent of the current global greenhouse gas emissions.
• One of the key reasons behind Temperature rise: Methane is blamed for having caused at least 25 to 30 per cent of temperature rise since the pre-industrial times.
• Methane largely a Sectoral gas: Unlike carbon dioxide, methane is largely a sectoral gas, and there are only a few sources of emission.
• Few sources large emissions of methane: The global warming potential of methane is about 80 times that of carbon dioxide. It accounts for a small portion of human-induced greenhouse gas emissions compared to carbon dioxide.

Did you know? Global Methane pledge

• The global methane pledge was adopted during COP26.
• Under it, countries agreed to reduce global methane emissions by 30 per cent by 2030.
• This will help to limit global warming to 1.5 degrees above pre-industrial levels.
• into the right hands for emissions mitigation.

What is Oil and Gas Methane Partnership (OGMP)?

• A methodology to help companies reduce methane emissions: The Oil and Gas Methane Partnership (OGMP) methodology was created by the Climate and Clean Air Coalition in 2014 as a voluntary initiative to help companies reduce methane emissions in the oil and gas sector.
• The Oil & Gas Methane Partnership 2.0: OGMP 2.0 is a multi-stakeholder initiative launched by UNEP and the Climate and Clean Air Coalition. The OGMP 2.0 is the only comprehensive, measurement-based reporting framework for the oil and gas industry that improves the accuracy and transparency of methane emissions reporting in the oil and gas sector.
• Companies joined the partnership: Over 80 companies with assets on five continents, representing a significant share of of the world’s oil and gas production, have joined the Partnership. OGMP 2.0 members also include operators of natural gas transmission and distribution pipelines, gas storage capacity and LNG terminals. The members constitute around 35 per cent of the total global oil and gas production and two-thirds of the total liquefied natural gas flows around the world

What is Methane Alert and Response System (MARS)?

• MARS is a part of global efforts to slow climate change by tracking the global warming gas.
• The system will be the first publicly available global system to connect methane detection to notification processes transparently.
• The data-to-action platform was set up as part of the UN Environment Programme’s (UNEP) International Methane Emissions Observatory (IMEO) strategy to get policy-relevant data

How many countries and companies are engaged with the MARS initiative and is India involved?

• The system was requested by the United States and the European Union but it is in the service of the entire world.
• There are no Indian companies that have joined the OGMP.

Conclusion

• MARS is a satellite-based system to help industries and governments detect and reduce methane emissions. This will help UNEP confirm methane emissions reported by companies and analyze changes over time. India should consider this as an opportunity to cooperate in reducing methane emissions

Mains question

Q. Methane is 25 times more potent as a greenhouse gas than carbon dioxide and currently contributes about a quarter of global warming. In light of this, what does it mean to engage with the OGMP and MARS system?

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Context

• In the climate negotiations, areas of interest to developing countries are not covered or sparsely covered, while other areas are over-regulated. Equitable sustainable development is not even discussed. At COP27, the policy debate was no longer legitimized by science.

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Problems with the current negotiating process

• Developed countries’ national emissions of C02 from consumption: citizens in developed countries are not even aware that two-thirds of their national emissions of carbon dioxide come from their diet, transport, and residential and commercial sectors, which together constitute the major share of their GDP; the consumption sectors are not independent silos but reflect their urban lifestyles.
• Ignores urbanization and requirement of fossil fuels for developing countries: the process ignores that global well-being will also follow urbanisation of the developing country’s population, requiring fossil fuels for infrastructure and energy to achieve comparable levels.
• Requirement of Infrastructure development in developing countries: the need for vast quantities of cement and steel in developing countries for infrastructure, constituting essential emissions, as they urbanise, is not being considered.

Discussion missing on developing countries to pace up decarbonization

• Late urbanization: As late urbanisers, developing countries account for more than half the annual emissions and most emissions growth.
• Cannot afford new technologies: They cannot affordably access many of the new technologies to decarbonise quickly.
• Not having a comparable level playing field: The result is a shrinking of their policy space and human rights, endangering efforts to achieve comparable levels of well-being with those who developed earlier without any constraints.

Why the foundation of the Climate Treaty in international environmental law is questionable?

• US interpretation in Stockholm Conference on the Environment (1972):  In the run-up to the Stockholm Conference, the United States Secretary of States stated that “urbanization has changed the nation with seventy five percent of its people living in the urban area. we must see ourselves not only as victims of environmental degradation but as environmental aggressors and change our patterns of consumption and production accordingly”.
• Conclusion by scientific committee set up by the US: A scientific committee concluded that “long range planning to cope with global environmental problems must take account of the total ecological burden, controlling that burden by systematic reduction in per-capita production of goods and services would be politically unacceptable. A concerted effort is needed to orient technology toward making human demands upon the environment less severe”.
• Power play on risk management but not on the technology transfer: Power play framed natural resource use around risk management rather than technology transfer and the well-being of all within ecological limits.

Why climate negotiations are seen as Differentiated common responsibility?

• Missing the objective: The objective of the Climate Treaty is to avoid a concentration of cumulative emissions of carbon dioxide, prevent dangerous anthropogenic interference with the climate system and enable sustainable economic development.
• Climate agreements and initiatives: The Paris Agreement (2015) agreed to a 1.5°C global temperature goal. The Intergovernmental Panel on Climate Change (IPCC) in 2018 recommended that net emissions needed to zero out around 2050. In Glasgow, in 2021, negotiators zeroed in on coal to reduce future emissions.
• Ignored the key findings of the IPCC report: This initiative was not based on science and it ignored the key finding of the IPCC on the centrality of the carbon budget, i.e., cumulative emissions associated with a specific amount of global warming that scientifically links the temperature goal to national action.
• Carbon budget and the developing countries: Carbon budgets are robust as they can be estimated accurately from climate models. And, they are the most useful for policy as they couple the climate to the economy consistent with the science of both. The IPCC, in 2018, estimated the budget for a 50% chance of avoiding more than 1.5°C of warming to be 2,890 billion tonnes of carbon dioxide (now, it is less than 400bn tonnes), raising the question on how late developers will attain comparable levels of wellbeing.

Shortcomings in Climate justice

• Climate injustice flows from the negotiations and not from the text of the Climate Treaty.
• Rejected historical responsibility and shifted the burden: The process adopted the structure of international law in a manner that rejected historical responsibility for a continuing problem, and steadily shifted the burden to China and India.
• The flaw in set agenda: The agenda was set around globalised material flows described as global warming (the symptom), and not wasteful use of energy.
• Public finance is not materialised for actual objective: Public finance is used as a means to secure a political objective, and not to solve the problem itself. The $100 billion promised at Paris along with pre-2020 commitments constituting the incentive for developing countries to agree to a global temperature goal has not materialised. And, new funding for ‘Loss and Damage’ will be from a “mosaic of solutions”, constituting a breach of trust.
• Longer term trend has been ignored: With one-sixth of the global population, the developed country share in 2035 will still be 30%. Asia’s emissions with half the world’s population will rise to 40% remaining within its carbon budget. Pressures to further reduce emissions displace their human rights.

Conclusion

• India’s thrust on LiFE (or “Lifestyle for Environment”), with the individual shifting from wasteful consumption of natural resources goes back to the original science. Consumption-based framing challenges the ‘universalism’ that has dominated the negotiations and its common path of reductions based on single models. The carbon budget formalizes a ‘diversity’ of solutions. For example, in developed countries, exchanging overconsumption of red meat for poultry can meet half the global emissions reduction required by the end of the century.

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Context

• All 197 Parties to the UN Framework Convention on Climate Change (UNFCCC) agreed to enable financing for loss and damage to those that need it the most.

What is Loss and damage (L&D) fund?

• Adverse impact of climate change: Loss and damage (L&D) refer to the adverse impacts that vulnerable communities and countries face as a result of a changing climate.
• Making the rich countries pay: Rich countries had resisted L&D payments for years. Under pressure, they could no longer duck their responsibility.

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What has been agreed by all parties under COP 27?

• Formation of Transition committee: The COP27 decision includes the development of a Transition Committee dedicated to L&D, with equal representation from rich and poor countries.
• Operationalizing the funding arrangement: The committee has been tasked with configuring institutional arrangements, identifying and expanding sources of funding, and coordinating with existing funding arrangements — by COP28 in the UAE next year.

What role India can play in facilitating the Loss & Damage?

• Develop a Global Vulnerability Index: Last year, CEEW developed a Climate Vulnerability Index for India. It found that over 80 per cent of Indians are highly vulnerable to extreme climatic disasters. Such data in the public domain helps map critical vulnerabilities and plan strategies to build resilience by climate-proofing communities, economies and infrastructure.
• South-led research consortium: India would do well to convene experts and encourage the development of a South-led research consortium dedicated to scientific exploration of “event attribution” science. This would enrich climate science, draw attention to the more vulnerable regions, build research capacity in developing countries, and strengthen the L&D framework.
• Champion the Early Warning Systems Initiative: The Executive Action Plan for the Early Warnings for All Initiative, unveiled at COP27. It aims to ensure every person on Earth is protected by early warning systems within five years. It has called for targeted investments of $ 3.1 billion during 2023-27, which could avoid annual losses of $3-16 billion against natural hazards in developing countries.
• Leverage the Coalition for Disaster Resilient Infrastructure (CDRI): India founded the CDRI “to promote the resilience of new and existing infrastructure systems to climate and disaster risks in support of sustainable development”. CDRI is currently undertaking a Fiscal Risk Assessment study to support the development of a comprehensive disaster-risk financing strategy in more than 35 countries and multilateral entities.

Other strategies for Loss & Damage funds

• Pressurizing the developing countries: Pressure must also be put on large emerging economies, with rising emissions, to contribute to L&D financing. Limiting L&D compensation depends on increasing adaptation spending.
• Global Resilience Reserve Fund: The global resilience reserve fund is capitalized by IMF Special Drawing Rights, to create an insurance cushion against severe physical and macroeconomic shocks that climate risks would impose.
• Enhanced and accelerated emissions mitigation: While countries around the globe released its long-term low-carbon emissions development strategy last week, it must use scientific methods to quantify its long-term targets, to give direction to industry and investors.

Conclusion

• Loss & Damage financing is just a band-aid. Global emissions must reduce by 50 per cent by 2030 but there is no opprobrium for failing to present credible plans to do so. India drew attention to sustainable lifestyles via its Lifestyle for Environment mission. World must change its attitude towards climate change because it is already too late.

Mains Question

Q. What is Loss and damage fund agreed Under COP 27? What role India can play for global south for facilitating the L&D fund?

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