G20 Summit: $5.9 trillion required by developing countries to meet Paris climate goals

To hold global warming well below 2 degrees Celsius, ideally at 1.5 degrees Celsius, the developing countries will require $5.9 trillion in the pre-2030 period for implementing their NDCs, acknowledged G20, under India’s Presidency. Developing countries will also require $ 4 trillion per year for clean energy technologies by 2030 to reach net zero emissions by 2050.

Climate finance poses a significant hurdle, given that developing nations frequently confront financial constraints hindering their ability to invest in climate mitigation and adaptation efforts. These constraints arise because their budgets are typically overstretched by the pressing demands of immediate development priorities, including poverty alleviation, healthcare, and education. Furthermore, the initial costs associated with adopting renewable energy sources and incorporating environmentally friendly technologies can be prohibitive for these countries, making financial aid a vital requirement for their adoption.

In 2009, a significant pledge was committed by developed countries to provide $100 billion annually in climate finance by the year 2020. It was aimed at supporting climate-related initiatives in developing nations, helping them mitigate and adapt to the impacts of climate change but the goal was not achieved in the past. In 2020, a total of $83.3 billion in climate finance was provided and mobilised (private finance) by developed countries.

Under the Delhi Leaders’ Deceleration, the G20 nations has recall and reaffirm the commitment by the developed countries to the goal of mobilizing jointly $100 billion climate finance per year by 2020, and annually through 2025, to address the needs of the developing countries, in the context of meaningful mitigation action and transparency in implementation.

Developed country contributors expect this goal to be met for the first time in 2023.

Also, the Call on Parties will set an ambitious, transparent and trackable New Collective Quantified Goal (NCQG) of climate finance in 2024, from a floor of $100 billion a year, taking into account the needs and priorities of developing countries in fulfilling the objective of the UNFCCC and implementation of 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 an 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.

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