Why in the news?
The Bonn climate meeting failed to define a new climate finance goal, crucial for finalizing a sum exceeding $100 billion annually by the end of 2024.
Key Highlights of the Climate Meeting in Bonn, Germany
- Failure to Define New Climate Finance Goal: The recent climate meeting in Bonn did not make significant progress in setting a new climate finance goal. This new goal is supposed to replace the existing $100 billion per year target, which needs to be finalized by the end of 2024.
- Outcome: The meeting only produced a lengthy 35-page “input paper” summarizing various countries’ demands and concerns, without providing any concrete numbers or agreements. This paper is expected to be developed into a formal negotiating draft for COP29 in Baku, Azerbaijan.
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Search for a New NCQG (New Collective Quantified Goal)
- Importance of Climate Finance: Money is essential for climate action, including mitigation, adaptation, and other tasks like collecting and reporting climate data, which require substantial funds, especially in developing countries.
- Existing Commitment: Developed countries had promised to mobilize $100 billion annually from 2020 to help developing countries fight climate change. This target is now being re-evaluated to increase the amount post-2025.
Previous Assessment
- Current Needs: It is widely recognized that developing countries now require trillions of dollars annually. A UNFCCC assessment indicated that these countries need about $6 trillion by 2030 for climate actions, with adaptation needs alone requiring $215 billion to $387 billion annually.
- Energy Transition: The global shift to clean energy requires investments of about $4.3 trillion per year until 2030 and around $5 trillion annually thereafter until 2050 to achieve global net-zero emissions.
- Developing Countries’ Demands: India has proposed that developed countries should provide at least $1 trillion annually after 2025, while Arab and African countries have suggested figures of $1.1 trillion and $1.3 trillion, respectively.
Debate Over Contribution
- Original Responsibility: According to the UNFCCC and Paris Agreement, only the 25 countries listed in Annexure 2, along with the European Economic Community, are responsible for providing climate finance to developing countries.
- Shifting Responsibility: These countries argue that other nations, such as China, Gulf countries, and South Korea, are now economically capable and should also contribute. However, countries like China have stated they do not intend to take on additional responsibilities beyond their current efforts.
- Developed Countries’ Stance: While acknowledging that the new target must be higher than the existing $100 billion per year, developed countries have not made any specific offers publicly.
Way forward:
- Clear Definition of Climate Finance: Establish a universally accepted definition of climate finance to prevent discrepancies in reporting and ensure transparency.
- Precise Targets and Timelines: Set clear, incremental targets leading up to the final goal, with defined timelines for achieving these targets. This will provide a roadmap for both developed and developing countries.
Mains PYQ:
Q Describe the major outcomes of the 26th session of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC). What are the commitments made by India in this conference? (UPSC IAS/2021)
