INDIA IS PUSHING FOR $1 TRILLION CLIMATE FINANCE DEAL AT COP29

As COP29 approaches in Baku, Azerbaijan, the spotlight on climate finance has never been more intense. From technological investments to adaptation measures, the upcoming negotiations aim to shape a new climate finance target.

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With India and other developing nations at the forefront, achieving a balance between domestic needs and international commitments is crucial.

In the lead-up to COP29, securing effective climate finance is as critical as the 2015 Paris Agreement.

Discussions on financial flows, domestic challenges, international commitments, and the role of private finance highlight the complexity of the issue.

LEGACY OF THE $100 BILLION TARGET

In 2009, developed nations committed to mobilising $100 billion annually by 2020 to assist developing countries in their climate efforts.

However, this figure has only been reached once, in 2022, with $116 billion mobilised. Yet, reports indicate that developing nations require between $400 billion and $500 billion annually for climate goals, according to UN estimates. Countries like India, with their unique economic and social structures, must navigate these negotiations carefully to secure fair financial commitments that align with their ambitious decarbonization goals.

Ashwini Swain, fellow at the Centre for Policy Research spoke to The Daily Guardian on financing India's power sector transition, he said, "The biggest risk to private investment in India's power sector is the low ability to recover costs from consumers. Unless we address that, financing will remain a challenge. India's energy transition is moving in a unique direction. The international community should recognize this and focus on emissions reduction rather than coal replacement alone. Mobilising private capital requires substantial risk mitigation. The government can play a role here by channelling public funds as catalysts."

DOMESTIC VS.INTERNATIONAL CLIMATE FINANCE