India on Saturday accused developed countries of deviating from the Paris Agreement on climate finance and demanded that climate funding should be “predictable, additional and devoid of greenwashing”.
India made the intervention at the COP30 climate summit in Belem while speaking on behalf of the LMDC (like-minded developed countries) group, which represents over 50 per cent of the world's population.
India said the new climate finance target of at least $300 billion annually by 2035, agreed upon at the Baku climate summit last year, was a “suboptimal decision” as it lacked a clear commitment from developed countries.
“ …The provisions of the finance under 9.1 are a legal obligation of the developed countries, not a voluntary Act. Article 9.3 expects developed countries to also lead in mobilisation,” said Suman Chandra, the Indian representative at the Belem meeting, explaining how the climate finance decision at Baku deviates from the Paris Agreement ratified by close to 200 countries.
“Grants and concessional resources under Article 9.1 can lower the cost of capital, facilitating a robust pipeline of investments in developing countries,” Chandra pointed out.
“We reiterate that 9.1 of the Paris Agreement sits at the core of the discussion on climate finance… provisions of finance (should be made) in a way that is predictable and additional and devoid of concerns of greenwashing,” the Indian representative said, pointing out that proper financial decision is critical for any progress on the Paris Agreement and the decisions of COP30.
India has also pointed out that a recent synthesis report, prepared in accordance with the Paris Agreement mandate, showed “certain developed countries also reported a decrease in financial support compared to the previous years, with reductions ranging from 51-75% and 76-100% respectively”.
Article 9.1 of the Paris Agreement states: “…Developed country parties shall provide financial resources to assist developing country parties with respect to both mitigation and adaptation in continuation of their existing obligations under the Convention.”
Article 9.3 only asks the developed countries to “continue to take the lead in mobilising climate finance from a wide variety of sources”.
At the Baku summit, the UN process had set the annual climate finance goal at $1.3 trillion, but developed countries agreed to only one-third of the amount after a prolonged negotiation that overshot the scheduled deadline by over a day.
During the ongoing COP, a Baku to Belem financial road map was presented jointly by the presidents of both COP29 and 30. Climate experts have criticised the road map for lacking adequate vision and penetration on the ground.
In a significant move in climate diplomacy, the Indian representative thanked the Chinese representative in his submission for “highlighting how that imbalance (mitigation and adaptation) exists so starkly” in the financial rollout model of developed countries.
During the meeting, several countries supported India’s position on finance. China said the climate finance support system should stay true to the original purpose and spirit of the convention and the Paris Agreement. The small island vulnerable countries want the finance to be predictable, transparent, and responsive.