India and other developing countries demand fair climate finance commitments at COP29 summit

India along with other developing countries at COP29 called for fair and effective climate finance agreements to support global climate action. Representing like-minded developing countries (LMDCs), India stressed the need for similar financial assistance from developed countries, highlighting the burden on weaker economies. Negotiators noted that about 69% of climate finance currently comes in the form of loans, a structure that could impose heavy debt burdens rather than ease economic stress.

Emphasis on accountability and sustainability in climate financing

The new Collective Quantified Target (NCQG) for climate finance remains a central focus of the Summit, as discussions continue on setting clear financial targets and accountability measures. LMDC, working with the G77, BASIC and African and Arab groups, expressed concern over the failure of developed countries to meet the $100 billion annual funding target, which has long been a point of contention in international climate negotiations. Delegates urged a transparent and consistent approach to climate finance, ensuring that commitments are tracked and maintained in good faith.

Challenges with the current funding mechanism

In ongoing talks, India and other LMDC members expressed concerns about the proposed stringent investment requirements, as they could put smaller, less developed countries at a disadvantage. The Block argued that such policies could naturally benefit countries with strong financial infrastructure, potentially bypassing economies with limited investment access. LMDC negotiators reiterated the importance of the “common but differentiated responsibilities” principle, stressing that climate goals must consider the specific needs and capacities of all countries.

Call for an equitable solution

India and other LMDC countries continue to press for a collectively agreed definition of climate finance, emphasizing accessible and fair financing options for all developing countries. As discussions progress, the Group is committed to achieving a balanced outcome that promotes inclusivity, accountability and transparency in international climate finance – critical components for building global trust and cooperation in addressing climate change. Are.