Budget should address climate finance gaps

NOBEL LAUREATE ESTHER Duflo, speaking at the Kerala Literature Festival in Kozhikode last week, weighed in on President Donald Trump's re-withdrawal from the Paris Agreement. She said, "It puts an onus on countries like India to take action...when a country like the US turns its back on climate action, it sort of turns the tables and puts other countries of the world into the picture."

- ANVITII RAI [e-mail]

This is important as it may be tempting for India to take inspiration from Trump's withdrawal and go slow on climate-based action. For example, there has been a rising chorus in favour of thermal power which is seen as essential to support the growing industrial and residential electricity consumption, especially as the country aims for higher economic growth and improved living standards. Admittedly, India's strategy to balance the expansion of thermal power with renewable energy (RE) commitments is complex but it is necessary. The expansion of coal-based power can at best be a stop-gap measure to ensure energy security and support economic growth while RE infrastructure is scaled up.

India did call for developed nations to contribute $1 trillion a year to provide to developing countries as climate finance annually at COP29, and is itself a recipient of aid from funds like the Green Climate Fund, Climate Investment Funds, and World Bank loans. Trump's withdrawal, thus, may adversely affect climate finance targets. However, the other half of her statement, on India taking up the mantle of climate action, warrants examination, especially with the Union Budget around the corner.