Climate finance not going where needed most: CSE
BATHINDA: Climate finance is not going to the countries where it is needed the most, advocacy group Centre for Science and Environment (CSE) director general Sunita Narain said during a webinar where CSE launched its latest report - Beyond Climate Finance. "We know that current climate finance is inadequate. The US $100 billion a year pledged in 2009 is too little, too late. Whatever is being given in the name of climate finance is not concessional. In 2011-20 period, only about 5% was given as grants and the rest as loans or equity," she said. The webinar and the report preceded the two-day summit for a New Global Financial Pact, in Paris, France, on June 22-23. Avantika Goswami, programme manager, climate change, CSE, said, "Only 16% of total climate finance can be termed as concessional - money given on favourable terms such as grants or low interest loans. The money that is flowing towards climate projects is heavily concentrated in North America, Western EU and East Asia (predominantly China). This is where most of the growth in clean energy investment has been concentrated as well. So, the money is not going to the poorest, most vulnerable countries." Goswami says emerging economies and developing countries (other than China) will need US $1 trillion in external finance by 2030. The CSE report points out that financial handicaps such as a growing debt crisis also hinder developing countries' climate ambition. CSE's analysis shows many low- and middle-income countries pay more in annual debt servicing costs than what they would need to spend annually to achieve their NDC goals. Narain added, "Now, when we view the pressure to decarbonise within the context of larger systemic financial barriers, it looks like the walls are closing in from all sides for the Global South. It is unacceptable that it is being said at UNFCCC forums that developing countries do not want to take on climate ambition. The reality is that most of them simply cannot afford it. This system is broken and needs urgent reform. Climate ambition cannot be unlocked while operating in a financial system that is inequitable by design."
