Enforce laws

It is clear from the recent geopolitical developments that most developing countries need to fend for themselves, notwithstanding the lofty global goals for climate protection, when it comes to sustainability. Forging partnerships with key stakeholders in industry and governments across the globe and creating opportunities for finance to flow into sustainable products and technologies is critical to change the corporate and social behaviour in the long run

- R R RASHMI The writer is a distinguished fellow at TERI and a former civil servant with the Government of India

The year 2025 has thrown up new risks for global environmental policies. Amidst the continuing and burgeoning threats of climate change, biodiversity loss, over-exploitation of natural resources and resultant environmental degradation, an added risk is that of global finance for environmental actions drying up or slowing down.

Governments in the developed world are increasingly losing the will and capacity to support the global goals at the cost of the domestic exchequer. They may not have officially downgraded their support for global goals.

But their ability and willingness to part with public resources is certainly in question. The announcements made by the new dispensation in Washington DC have rendered the matters a little more difficult.

Many regions of the world are severely affected by persistent social and military conflicts. In such regions, climate transition pathways are obviously not a priority over the existential questions of survival and reconstruction.

The conflicts have lowered the appetite of the developed-country governments to deploy resources for the benefit of communities in other regions.

A combination of several factors ranging from supply chain disruptions, global energy supply uncertainties, and rising trade protectionism have contributed to the worsening scenario.

On the other hand, the demand for more and affordable energy continues to rise in developing countries like India and the need for protection from devastating impacts of environmental degradation is felt more than ever.

What then is a possible solution to the pressing question of dwindling global finance for environmental goals? Can the markets and other stakeholders fill this gap?