G-20 Summit: Developing Countries Will Need $5.9 Trillion To Meet Paris Climate Goals
To keep global warming well below 2 degrees Celsius, ideally at 1.5 degrees Celsius, developing nations will need USD 5.9 trillion in the pre-2030 timeframe to execute their NDCs, according to the G20, which India currently chairs. Developing countries will also need USD 4 trillion per year in renewable energy technology by 2030 in order to achieve net zero emissions by 2050.
Climate finance is a serious challenge because developing countries usually face financial constraints that limit their ability to participate in climate mitigation and adaptation measures. These limits come as a result of their budgets being overstretched by the compelling needs of immediate development goals such as poverty reduction, healthcare, and education. Furthermore, the initial expenses of implementing renewable energy sources and environmentally friendly technology might be prohibitively expensive for these countries, making financial assistance a critical necessity for their acceptance.
Developed countries made a big pledge in 2009 to provide USD 100 billion in climate finance annually by 2020. It was intended to support climate-related programs in developing countries, assisting them in mitigating and adapting to the effects of climate change, however, the goal was not met in the past. In 2020, developed countries provided and mobilised a total of USD 83.3 billion in climate funding (private finance).
The G20 nations have recalled and reaffirmed the developed countries' commitment to mobilising USD 100 billion in climate finance per year by 2020, and annually through 2025, to address the needs of developing countries, in the context of meaningful mitigation action and transparency in implementation.
Contributors from developed countries anticipate that this objective will be attained for the first time in 2023.
In addition, the Call on Parties will establish an ambitious, transparent, and trackable New Collective Quantified Goal (NCQG) of climate finance in 2024, starting from a base of USD 100 billion per year and taking into account the needs and priorities of developing countries in meeting the UNFCCC's goal and implementing the Paris Agreement.
As per the Glasgow Climate Pact, G20 nations are urging the developed countries to fulfil their commitment to at least double their collective provision of adaptation finance from 2019 levels by 2025, in the context of achieving scaled-up financial resources. There is also a call for all relevant financial institutions, such as MDBs and multilateral funds to further strengthen their efforts including by setting ambitious adaptation finance targets and announcing, where appropriate, revised and enhanced 2025 projections.
