India’s Stance at COP29

UNFCCC COP29 was held in Baku, Azerbaijan from 11 to 22 November 2024. It took place against a backdrop of toppling temperature records and unprecedented extreme weather events – heatwaves, storms, floods and droughts – that have wreaked havoc and devastation across the planet, with mounting losses and damages on people and nature.

India’s Intervention – ESGRisk.ai Analysis

At COP29, India expressed strong dissatisfaction with the developed nations’ proposal of $300 billion annually for climate finance—a figure that, while seemingly significant, falls drastically short of what is truly needed.

In 2009, developed countries committed to mobilizing $100 billion annually. Fast-forward to 2024, and while this new offer may seem like progress, it doesn’t account for inflation or the increased urgency of the climate crisis. Considering today’s economic realities, this funding should be in the trillions.

India and other developing nations aren’t asking for favours—they’re demanding  equity and fairness. This is a form of ‘compensation’ for historical emissions by developed economies since the Industrial Revolution. The Industrial Revolution—starting in England and spreading across Europe and its colonies—fuelled large-scale use of coal, gas, and other natural resources, contributing massively to GHG emissions. Colonies such as India were leveraged for cheap resources and labour, a legacy that still shapes emissions disparities today. Many former colonies, only recently independent, continue to bear environmental and economic costs from this historical exploitation.

This divide persists, with high-income nations having historically contributed the most to GHG emissions. The proposed $300 billion isn’t just for India; it’s for all developing and least-developed nations. Spreading this amount across many countries is insufficient to address the immense challenges of transitioning to sustainable economies and mitigating climate impacts. Time is running out.

As the global temperature edges closer to the 1.5°C threshold, this inadequate response risks pushing us past 2°C, where the consequences will devastate everyone. Developed nations must rise to the challenge, for their inaction imperils not just the Global South but the shared future of all humanity. The path forward must embrace global solidarity, grounded in trust and equity, to navigate the climate crisis with justice at its core.

Key Highlights of India’s Stance

1. Climate Finance Shortfalls
   At COP29, developed nations proposed a $300 billion annual climate finance package. While this appears significant, India’s delegation criticized it as grossly inadequate:

• Historical Commitment Gap: The original 2009 promise of $100 billion annually remains unfulfilled, and inflation-adjusted estimates suggest today’s requirements exceed $1 trillion annually.
• India’s Demand: India called for a $1.3 trillion climate finance package, with at least $600 billion in grants or equivalent resources to ensure equitable access for developing nations.

1. Mitigation vs. Finance Balance:

India firmly rejected the shifting focus from enabling finance to mitigation targets without adequate financial backing. The delegation emphasized:

The NCQG (New Collective Quantitative Goals) must prioritize financial specifics, including:

1. • 1. Quantum: A minimum of $600 billion in grants annually.
     2. Transparency: Detailed tracking mechanisms for fund allocation.
     3. Access: Simplified procedures for resource mobilization by developing countries.
2. Adaptation and Just Transitions
   India strongly opposed prescriptive interpretations of “Just Transition” that disregard the historical inaction of developed nations. Key points included:
   • Developed countries must take the lead in mitigation and finance provisioning.
   • India highlighted the need for incremental and long-term adaptation strategies over “transformational” approaches that may not align with its sustainable development goals.
   • Specific demands included:
     1. Establishing the Baku Road Map to guide adaptation progress.
     2. Indicators based on national reports, rejecting third-party data sources.
3. Loss and Damage Fund
   While COP29 saw progress with the operationalization of the Loss and Damage Fund, its initial funding of $10 billion is minuscule against the estimated $580 billion required annually by 2030 to address climate impacts in vulnerable regions.
4. Global Stocktake (GST)
   India voiced concerns over the GST outcomes and their mitigation-centric focus:
   • Developed countries are projected to increase emissions by 0.5% from 2020 to 2030, contradicting the Paris Agreement goals.
   • India demanded a stronger acknowledgment of the pre-2020 mitigation gap by Annex-I Parties, where their emissions reductions fall short by 3.5 billion tonnes CO₂ annually.

Quantifying the Stakes for India

India is among the nation’s most vulnerable to climate impacts, with the following projections highlighting the stakes:

• Climate-related disasters could cost India $1.4 trillion by 2050 if warming exceeds 2°C.
• India’s adaptation costs are expected to rise to $206 billion annually by 2030.
• To meet its Nationally Determined Contributions (NDCs), India requires an estimated $2.5 trillion by 2030.

India’s stance at COP29 can be summarized as a call for fairness and responsibility:

• Developed nations must take accountability for their historical emissions, which account for 79% of cumulative global emissions since 1850.
• Without adequate funding, developing nations cannot meet their climate goals, exacerbating global inequalities.