On climate finance to developing countries

• The 29th Conference of the Parties (COP29) of the UNFCC is expected to focus on climate finance issues.
• Developing countries are among the most vulnerable to climate change due to geographical factors and reliance on sectors like agriculture.
• Despite being vulnerable, developing countries have contributed relatively little to the cumulative emissions causing climate change.
• The 2009 Copenhagen Accord had developed countries commit to providing $100 billion a year in climate finance to developing countries by 2020, later made applicable through 2025.
• Climate finance is defined as local, national, or transnational financing drawn from public, private, and alternative sources.
• Developing countries require external financing for climate action due to lack of access to electric power, smaller domestic financial systems, and higher capital costs.
• India has both short-term and long-term climate targets, including installing 500 GW of generating capacity from non-fossil-fuel sources, five million metric tonnes per annum of green hydrogen production capacity, and differentiated levels of penetration for various Electric Vehicle (EV) categories.
• The New Collective Quantified Goal (NCQG) is a top priority, including actual disbursals, new and additional public capital in the form of direct grants, and private capital mobilised by public capital.