SYLLABUS
GS-3: Conservation, environmental pollution and degradation, environmental impact assessment
Context:
India, along with 12 other countries and a regional alliance of African nations, announced plans to establish a national platform for “climate and nature finance” at the ministerial event during COP30 in Belem, Brazil.
More on the News
- The event was co-hosted by Brazil’s Ministry of Finance and the Green Climate Fund (GCF), bringing together ministers, senior officials, and leaders from international, national, public, and private climate finance leaders.
- India played a leading role among developing countries in advocating for focused discussions on Article 9.1 of the Paris Agreement, which mandates developed countries to provide funds for mitigation and adaptation.
- The country platform announcement aligns with ongoing efforts to finalize indicators for the Global Goal on Adaptation (GGA), providing a framework to measure progress on climate adaptation efforts worldwide.
About the Paris Agreement
It is a legally binding international treaty on climate change.
It was adopted by 195 Parties at the UN Climate Change Conference (COP21) in Paris, France, on 12 December 2015 and entered into force on 4 November 2016
Its overarching goal is to:
- Hold “the increase in the global average temperature to well below 2°C above pre-industrial levels,” and
- Pursue efforts “to limit the temperature increase to 1.5°C above pre-industrial levels.”
Country platform for Climate and Nature Finance
- The platform is a nationally led coordination mechanism connecting government, donors, financial partners, and stakeholders.
- It aims to help countries move away from a “fragmented approach” to accessing climate finance.
- Supported through the GCF’s Readiness Programme, the platform will align financing flows with national climate priorities, catalyze early-stage action, and promote programmatic investment beyond individual projects.
- The new initiative will be guided by a steering committee with a majority of representatives from developing countries and will operate through a lean secretariat, supported during its incubation period by the Africa Climate Foundation (ACF).
- Initial funding of nearly $4 million will support governance, coordination, knowledge sharing, and early-stage platform design.
Green Climate Fund
- The GCF is the primary operating entity of the UNFCCC’s financial mechanism and the 2015 Paris Agreement, channeling large-scale finance to developing countries for climate adaptation and mitigation.
- As of 2024, it has committed over USD 19 billion across 134 developing countries.
- The Readiness Programme strengthens national institutions, including National Designated Authorities (NDAs) and Direct Access Entities (DAEs), and helps align projects with national climate plans like Nationally Determined Contributions (NDCs) and National Adaptation Plans (NAPs)
India’s Commitment and Engagement
- As of August 2024, India has received GCF commitment for 11 projects/programmes worth $782 million, covering sectors such as water, clean energy, coastal management, livelihoods, transport, medium and small enterprises, and climate start-ups.
- Most financing is provided as concessional loans.
- The Environment Ministry serves as the Nodal Designated Authority, enabling state governments and private entities to effectively access GCF funds.
Challenges and Criticisms
- The GCF faced criticism for complex fund disbursal processes, limited technical support, and a tendency to prioritize large projects over smaller community-based initiatives.
- Its 24-member board, split evenly between developed and developing countries, often struggles to reach consensus, which can slow decision-making and policy actions.
Sources:
The Hindu
Green Climate