Union Environment Minister Bhupender Yadav, representing India at the COP28 U.N. Climate Summit in Dubai, emphasized the critical need for a clear definition of climate finance to address issues of transparency and trust among nations. Minister Yadav expressed concerns about the alleged lack of clarity regarding wealthier countries fulfilling the $100 billion climate financing commitment made in 2009.
At COP15 in 2009, developed nations pledged to mobilize $100 billion annually by 2020 for climate action in developing nations. The Organisation for Economic Co-operation and Development (OECD) indicated on November 16 that the commitment was likely met for the year 2022, but developing nations contest that the promise remains unfulfilled.
During a ministerial meeting on climate finance in Dubai, Minister Yadav stressed, “The lack of definition leads to a lack of trust and transparency on a matter that should be as clear as crystal.” He highlighted discrepancies in estimates, citing OECD’s figure of about $83 billion provided and mobilized in 2020 compared to Oxfam’s estimate of $21 to $24.5 billion from their Climate Finance Shadow Report.
Minister Yadav called for prioritizing the definition of ‘climate finance’ as a fundamental outcome to pave the way for subsequent actions. He underscored the importance of a definition that incorporates climate specificity, new and additional flows, grants, and resources at highly concessional terms.
Addressing the concerns raised by Like Minded Developing Countries (LMDC), Minister Yadav emphasized the need for enhanced provisions and mobilization by developed countries. He called for a flow of finance alongside access to critical technologies such as offshore wind and battery storage, crucial for meeting commitments under the UNFCCC and the Paris Agreement.
The minister urged mutually agreed standard formats for climate finance delivery, emphasizing sufficient disaggregation of finance flow types for consistent, predictable, and transparent information.
