Mobilising Green Funds - IE - 30/11/22
Recently, at the United Nations Framework Convention on Climate Change Conference (UNFCCC) of Parties 27 in Sharm el-Sheikh (Egypt), countries agreed that a complete transformation of the international financial system was needed to significantly scale up resources for Climate Action.
The money currently being channelised for climate action is barely 1%-10% of the estimated requirements.
GS3 - Env & Eco
-It refers to local, national, or transnational financing—drawn from public, private and alternative sources of financing—that seeks to support mitigation and adaptation actions that will address climate change.
-The UNFCCC, Kyoto Protocol, and the Paris Agreement call for financial assistance from Parties with more financial resources (Developed Countries) to those that are less endowed and more vulnerable (Developing Countries).
-This is in accordance with the principle of “Common but Differentiated Responsibility and Respective Capabilities” (CBDR).
Fund is Needed for Climate Action:
-The global transition to a low-carbon economy would likely require about USD 4-6 trillion every year till 2050.
-About USD 4 trillion would need to be invested annually in the renewable energy sector till 2030 if the net-zero emissions targets were to be achieved.
-The cumulative requirement of the developing countries, just for implementing their climate action plans, was about USD 6 trillion between 2022-2030.
-The USD 100 billion amount that the developed countries have promised to mobilise every year represents practically the entire money in play right now.
Even this USD 100 billion has not yet been fully realised.
India’s Initiatives for Climate Finance:
-National Adaptation Fund for Climate Change (NAFCC)
-National Clean Energy Fund
-National Adaptation Fund