{"id":218204,"date":"2022-12-13T19:13:28","date_gmt":"2022-12-13T13:43:28","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=218204"},"modified":"2022-12-13T19:14:00","modified_gmt":"2022-12-13T13:44:00","slug":"we-will-need-to-find-our-own-sources-of-climate-finance","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/we-will-need-to-find-our-own-sources-of-climate-finance\/","title":{"rendered":"We will need to find our own sources of climate finance"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article\u00a0\u201cWe will need to find our own sources of climate finance\u201d <\/strong>published in the Livemint <\/b>on 13th<\/sup>\u00a0November 2022<\/strong>.<\/p>\n

Syllabus<\/strong>: GS \u2013 3 \u2013 Conservation, environmental pollution and degradation.<\/p>\n

Relevance<\/strong>: About climate finance.<\/p>\n

News<\/strong>: The agreement to create a loss and damage fund might largely trickle in through concessional loans instead of proper funding.<\/p>\n

What is the present state of climate finance?<\/h5>\n

According to the OECD\u2019s climate finance trends report 2022<\/strong>, of the targeted $100 billion aggregate climate funding, about $83 billion was mobilized from developed nations via global agencies through 2020. Among these, concessional and non-concessional loans stood at 71%, grants at 26% and equity at 2%.<\/p>\n

Of these, private climate finance and export credit extended via agencies comprised just $15 billion.<\/p>\n

Thematic split of $83 billion<\/strong>: a)<\/strong> Majority of the funds are invested in climate mitigation activities<\/strong>($49 billion) focused mainly on cleaner energy and transport, b) <\/strong>After that about $28 billion was spent in climate adaptation<\/strong>, mainly for agriculture, water supply, forestry restoration, coastal fishing and sanitation.<\/p>\n

Regions<\/strong>: Asia (42% of the 2020 total), Africa (26%) and Latin America (17%).<\/p>\n\n\n\n
Must read: Climate Finance: Meaning, Need and Challenges \u2013 Explained, pointwise<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
Why does the world need to work on climate finance?<\/h5>\n

The adaption finance needs of developing countries will gallop to $340 billion annually by 2030. For instance, India alone will have to install around $250 billion worth of renewables by 2030.<\/p>\n

Small and medium-sized enterprises and local communities<\/strong> are left out of major government plans such as India\u2019s long-term Low Emissions Development Strategy (LEDS).<\/p>\n\n\n\n
Must read: Climate Reparation: Loss and Damage \u2013 Explained, pointwise<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
What should be done to improve climate finance in India?<\/h5>\n

Focus on sustainability<\/strong>: For that, India\u2019s credit curve requires a different approach that rewards entities seeking to build resilience<\/strong> through sustainability.<\/p>\n

Improve banking access<\/strong>: Indian banks should be nudged to lock in long-tenure<\/strong>, low-cost private climate capital<\/strong> from alternative sources, like overseas investor institutions, private philanthropy, CSR budgets, etc. They should be incentivized to lend cheaper loans to diverse businesses<\/strong>.<\/p>\n

Encourage new climate technologies<\/strong>: This can be done by nurturing finance instruments and venture capitalists.<\/p>\n

Bridge urban-rural divide in climate finance<\/strong>: This can be done by providing low coupon sustainability-linked bank loans or overdraft facilities at the entity level.<\/p>\n

Delineated projects of larger companies or well-rated special-purpose vehicles should meet pre-set mitigation specifications<\/strong> and has to be encouraged to raise funds through domestic financial institutions (DFIs), project financiers and private and sovereign green bonds.<\/p>\n\n\n\n
Read more: Funding reality check for India\u2019s dream to achieve net-zero by 2070<\/a><\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cWe will need to find our own sources of climate finance\u201d published in the Livemint on 13th\u00a0November 2022. Syllabus: GS \u2013 3 \u2013 Conservation, environmental pollution and degradation. Relevance: About climate finance. News: The agreement to create a loss and damage fund might largely trickle in through concessional… Continue reading We will need to find our own sources of climate finance<\/span><\/a><\/p>\n","protected":false},"author":10311,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10501],"class_list":["post-218204","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-live-mint","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704848484},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/218204","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10311"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=218204"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/218204\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=218204"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=218204"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=218204"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}