: Opinion: Getting climate finance concept right #IndiaNEWS #News By Dr T Prabhakara Reddy ‘Shared prosperity’ had been an underlying principle for several international initiatives that we are

Opinion: Getting climate finance concept right #IndiaNEWS #News
By Dr T Prabhakara Reddy
‘Shared prosperity’ had been an underlying principle for several international initiatives that we are following while trying to address the issues confronting the poor and vulnerable sections, be it poverty or inclusive growth and so on. But when it comes to the issue of climate change, we are not able to come to a consensus on some key issues, more importantly, on mobilising resources for climate finance.
Therefore, the crux of the issue is how to convince the bigger players like the US and Europe who are reluctant to contribute to climate finance in a big way and are shirking their responsibility while leaving the vulnerable sections like developing countries in the lurch.
Triple Crisis
In fact, developing countries are confronted not only with climate change but also with the economic downturn, Covid-19, biodiversity loss and conflict etc. Besides, at a macro level, there is a triple environmental crisis ie, climate change, biodiversity loss and pollution that are interlinked and intricately related. A multi-pronged approach is, therefore, required for which financial resources are essential.
In fact, the United Nations strongly believed that the COP27 has been built on the basis of outcomes of the previous Conference of the Parties (COP26) which emphasise that there is urgency in reducing greenhouse gas emissions, building resilience, adapting to the inevitable impacts of climate change and delivering on the commitments to finance climate action in developing countries.
Climate finance is required for mitigation because large-scale investments are compulsory to significantly reduce emissions. Similarly, climate finance is equally important for adaptation, as significant financial resources are needed to adapt to the adverse effects and reduce the impacts of a changing climate.
Climate Change Contributors
The transformative imperative of climate finance is that the commitment by developed countries to jointly mobilise more than 0 billion per year in support of climate action in developing countries has been essential to the climate accords since 2009 and it displays an important symbol of trust. Added to it, developing countries precisely consider it indispensable for securing progress and meeting the goals of the Paris Agreement.
However, climate finance has become a tricky issue as no one owns it as a ‘responsibility’ and rather denies instead of
accepting their role in contributing to the climate change which occurred due to industrialisation that they have followed so far.
On the other hand, challenges pertaining to climate finance include; the definition of what it constitutes, the methodology, objective reporting mechanisms and positive and affirmative commitments from developed nations like the US and Europe who are contributors to climate change over a period of time.

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