Paris Global Climate Financing Summit

IAS Current Affairs

1 year ago

Overview

With the aim of addressing the underfunding of poor nations, the Summit for a New Global Financing Pact was recently convened in Paris.

Money that is local, national, or international that is derived from public, private, and alternative sources of funding in an effort to
Image by Sergio Cerrato – Italia from Pixabay

promote climate change adaptation and mitigation measures.
Agreement: The parties to the Convention, Kyoto Protocol, and Paris Agreement are required to provide financial support to people who are less wealthy and more vulnerable.
In UNFCCC COP26, new financial pledges to support developing countries in achieving the global goal for adapting to the effects of climate change were made.
Need: Climate finance is needed for mitigation, because large-scale investments are required to significantly reduce emissions.
Climate finance is equally important for adaptation, as significant financial resources are needed to adapt to the adverse effects and reduce the impacts of a changing climate.
Long-term financing process: Further the mobilisation and scaling up of climate finance resources emanating from a wide range of sources, including alternative sources that are public and private, bilateral and international.

National Adaptation Fund for Climate Change (NAFCC): It was established in 2015 to meet the cost of adaptation to climate change for the State and Union Territories of India that are particularly vulnerable to the adverse effects of climate change.
National Adaptation Fund: It aims to bridging the gap between the need and the available funds.
- Established in 2014
- Under the Ministry of Environment, Forests, and Climate Change (MoEF&CC).
National Clean Energy Fund: It was created through the Finance Bill 2010-11 by the recommendation of Cabinet Committee of Economic Affairs (CCEA).
- To promote clean energy and funded through an initial carbon tax on the use of coal by industries.
- Major focus on research in clean energy technology

Special Drawing Rights: 100 billion SDR target for vulnerable nations has been reached.
A new Just Energy Transition Partnerships (JETP) deal worth 2.5 billion Euros was announced for Senegal, aimed at increasing the share of renewable energy in the country’s electricity mix.
Polluter taxes: Momentum on polluter taxes accelerated at the Summit, groups supporting a tax on shipping emissions.
Debt: It was announced that Zambia reached a $6.3 billion debt restructuring deal in debt owed to other governments including China.
Climate finance goal: It was suggested that the long overdue $100 billion climate finance goal will be delivered this year.
The EU called for increased coverage of global emissions by Carbon Pricing Mechanisms and allocating a portion of revenues to climate finance.

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