Published: June 17, 2025
Editorial Source: The Hindu
UPSC Tags: GS Paper 2 (International Relations), GS Paper 3 (Environment), Essay
Introduction
Despite repeated pledges, the $100 billion/year climate finance commitment made by developed countries under the Paris Agreement remains largely unmet. As the impacts of climate change grow more severe, especially for vulnerable nations, the world is witnessing not just a climate crisis—but a climate finance credibility crisis.
Core Issues Highlighted
1. Unmet Commitments
- Since 2009, developed countries pledged $100 billion annually for climate action in the Global South.
- Reality: By 2023, the actual disbursed amount stood at only ~$83 billion—with a significant chunk in loans, not grants, adding to debt burdens.
2. Disproportionate Allocation
- Mitigation vs Adaptation: The majority of climate finance flows into mitigation projects (solar, wind), while adaptation and loss & damage receive marginal support—despite being the immediate need for developing countries.
3. Opaque Tracking & Reporting
- There is no global standard for classifying what counts as climate finance. Countries often include pre-existing development loans or private investments, inflating figures.
India’s Stand and Recommendations
India has positioned itself as both a climate leader and a champion of climate justice:
- Transparency First: Advocates for a global taxonomy and transparent tracking mechanisms through the UNFCCC.
- Prioritize Adaptation: Seeks a greater share for adaptation finance, crucial for heat resilience, agriculture, disaster mitigation.
- Loss & Damage Fund: Pushes for rapid operationalization of the Loss & Damage Fund, with equitable governance and grant-based funding.
- South–South Cooperation: India promotes technology-sharing among developing nations—a move beyond dependency on the West.
- Green Credit & G20 Advocacy: At the G20 and COP platforms, India continues to call for fair green finance models and sovereign lending reform.
UPSC Relevance
| Area | Paper | Key Focus |
|---|---|---|
| Climate Finance | GS-3 | UNFCCC, Paris Agreement, CBDR-RC principle |
| Global South Diplomacy | GS-2 | Role of India in climate negotiations |
| Essay | Essay Paper | Themes like Climate Justice, Equity, Global Governance |
Mains Answer Probabale Questions
Q. “What are the barriers to effective global climate finance? Evaluate India’s role in promoting equitable climate funding.”
Conclusion
The editorial calls for a moral and institutional overhaul of how climate finance is structured. As the climate crisis deepens, rebuilding trust, ensuring equity, and focusing on climate justice must form the cornerstone of global negotiations. India, with its dual identity as a large economy and a vulnerable country, has a critical voice in shaping this dialogue.
Credit: Editorial insights from The Hindu, published June 17, 2025.
