India and Australia talk on climate finance at COP27

COP27 talk between India and Australia

India and Australia will co-lead ministerial consultations regarding the key issues that remain to be resolved for climate finance in the coming three days of the UN climate conference at COP27 at Sharm el-Sheikh, Egypt, according to the members from their Indian delegation.

COP27 talk between India and Australia
India and Australia talk on climate finance at COP27. Credit: AP

Climate finance is among the significant issues debated at COP27, encompassing financing for adaptation, mitigation, and damages and losses. India is one of the nations that have highlighted the lack of climate finance by advanced nations. It also has searched for a multilaterally negotiated term for climate finance.

In an interview on November 4, Union minister for environment and forest and climate change, Bhupender Yadav, said India is looking forward to an international consensus on the term “climate finance” at COP27. Since the country doesn’t recognize loans as climate finance, they push developing and developing countries to be further enslaved. The new goal for collective quantification for post-2025 must be ambitious and conciliatory. India said, intervening in the high-level ministerial dialogue about climate finance during COP 27 in New York on November 27.

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“We require a mobilization goal with grant or concessional terms. We need a massive flow of funds from different sources, both private and public, with developed countries playing a crucial role in encouraging funding for developing nations so that financing – the primary instrument of implementation is granted at concessional rates.

The Nationally determined contributions (NDCs) as well as the Needs determination reports can be a useful basis for estimating the need,” Yadav said in his remarks at the ministerial meeting on Climate finance held on Monday.
The topic of climate financing is a significant issue at COP27 due to the inability of 100 billion USD from 2020 onwards by developed countries has damaged the confidence of the developing nations. There are various estimates of climate finance.

The Organisation for Economic Co-operation and Development (OECD) estimates the amount of climate finance to total USD 83.3 billion by 2020. The figure is USD 79.9 billion for 2018. Oxfam estimates the mobilization amount in the range of USD 19-22.5 billion annually in 2017 and 2018. Other estimates derived from the United Nations Framework Convention on Climate Change for the year are USD 45.4 billion for 2017 and USD 51.8 billion by 2018, per the statement from India.

At a plenary meeting for an informal inventory on Monday, the Egyptian president called on the participants to change into a new direction and enhance the technical discussions by promoting more political involvement. The COP president expected the bulk of the work to be finished by Wednesday. He hopes that just a handful of questions will need to be solved by ministers.

In the meantime, finance discussions remain deadlocked about the issue of damage and loss of funding, According to a report issued by the Third World Network. This advocacy organization focuses on North-South affairs and observes the talks.

At the dialogue on climate finance, Oxfam, which has been monitoring progress in mobilizing USD 100 billion a year, said that developed nations have yet to be able to provide much-needed climate finance to developing countries and communities. “We recognize that money isn’t an issue. We’ve seen how wealthy nations have mobilized over USD 15 trillion in response to the COVID pandemic.

This is more than 150 times the goal of USD 100 billion. The developed countries claim that they’ve achieved USD 83.3 billion by 2020. Of this, 68.3 billion was public finance. But it’s not as simple as it appears. Oxfam estimates the true value, which is referred to as net climate-specific assistance to be between USD 21 and 24.5 billion. This is about a third of what developed nations report. And to make matters even more difficult 70% of public finances we estimate to come in the form of loans, pushing developing nations further into debt,” TWN quoted the Oxfam representative.

South Africa and Denmark will lead the mitigation text; Maldives and Spain will direct the adaptation. Climate finance through India and Australia, as well as Loss and Damage, will be financed by Chile and Singapore, which provides Germany and the carbon market along with Norway.

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