The New Delhi Declaration and Paris Agenda show a way forth

Source– The post is based on the article “The New Delhi Declaration and Paris Agenda show a way forth” published in the “mint” on 15th September 2023.

Syllabus: GS3- Environment

News– At the end of June, a historic summit on international solidarity concluded the Paris Agenda for People and the Planet. African leaders amplified this dynamic by adopting  the Nairobi Declaration during the first Africa Climate Summit in Kenya.

What are some facts about the Paris agenda?

It envisioned a world without poverty, where the health of our planet is protected, and vulnerable nations are empowered to confront the challenges posed by climate change and conflicts.

Achieving these objectives necessitates the mobilization of diverse financial resources and unity among nations.

What are the four principles that should guide the Paris agenda?

1. It is imperative that no nation is compelled to make a decision between eradicating poverty and safeguarding and conserving the environment.
2. There is a need to recognize the varying needs of different countries. They should pursue diverse pathways to achieve the objectives outlined in the 2015 Paris climate agreement.
3. There is a pressing need for additional financial resources to aid vulnerable economies. It will enable them to elevate their populations out of poverty while simultaneously preserving the environment.
4. Tackling contemporary global challenges and mitigating inequality, will depend on the expansion of private capital flows to emerging and developing economies.

What is the way forward for the Paris agenda?

There is a strong need for a substantial financial stimulus. The world has already achieved the target of $100 billion worth of special drawing rights to be channelled to the world’s most vulnerable countries, especially in Africa.

Governments capable of providing additional SDR rechanneling mechanisms should contribute more.

There is a need to enhance the efficiency of utilising these resources. It is crucial that each dollar lent by multilateral development banks (MDBs) is matched by at least one dollar of private financing.

There is a need to enhance the timeliness and predictability of the debt restructuring coordination mechanism for low-income countries, commonly referred to as the G20’s Common Framework for Debt Treatments.

Furthermore, discussions regarding its extension to lower-middle-income countries are imperative.

Accelerating debt suspension in countries experiencing debt distress is also crucial.

The G20 Common Framework has already yielded positive results in the cases of Chad and Zambia. It should be utilized more extensively.

Countries should stand by each other in times of disaster. It necessitated the development of specific tools to bolster resilience, including the inclusion of a climate-crisis clause in debt contracts. All financial institutions and stakeholders must collaborate to fulfill it.

Part of this collaborative effort should involve coordinating multilateral development banks (MDBs) and public development banks within the global network of development banks known as ‘Finance in Common.’

Cooperation regarding the energy transition can be achieved through the Climate Club, established by the G7 to fulfill the objectives of the Paris climate agreement.

To meet our climate obligations, there is a need to explore new avenues for international taxation. Governments will need to crack down on financial flows that evade legitimate tax systems.

Developing nations require equitable partnerships that empower them to add value by processing raw materials and critical minerals within their borders.

There is a need for substantial replenishment of the International Development Association expansion of the IMF’s Poverty Reduction and Growth Facility, and increased funding for the World Bank and other concessional facilities offered by the IMF.

There is a need for a new international finance mechanism for forests to finance ecosystem services. It will be essential to mitigate or reduce various risks, particularly foreign-exchange risks, associated with such investments.

To ensure that international commitments translate into tangible achievements, there is need for a joint working committee comprising international and regional organizations, countries, and civil societies to monitor this roadmap.