COP29 Summit / Why are rich countries being stingy in donating for the betterment of the world?

COP29 Summit: The world does not seem to be able to cope with the deepening impact of climate change. The biggest proof of this is those poor and developing countries which are the most affected by climate disasters. Despite this, the financial assistance they are getting is much less than their needs and seems like a mockery of their suffering.

The COP29 conference, which recently concluded in Baku, the capital of Azerbaijan, exposed this crisis. The main agenda of this meeting was climate finance, but the result only increased disappointment. The need is $ 1.3 trillion, but developed countries have promised only $ 300 billion, that too by 2035.

The crisis of climate finance

The purpose of climate finance is to provide financial assistance to those poor and developing countries, which are most affected by the effects of climate change. This money is invested in reducing greenhouse gas emissions, helping in disaster relief, and making climate-friendly policies.

However, the economic assistance of developed countries is not only inadequate, but the delays and conditions in it make it more complicated.

It was decided in 2009 that $100 billion would be given to poor countries every year from 2020 to 2025.

But this amount started being given only in 2022.

This delay and limited financial proposal created the impression among poor countries that rich countries are running away from their responsibilities.

Opposition of India and other countries

India directly rejected this time's climate finance package.

Indian representative Chandni Raina said, "This document is just a show-off and it is clear from this that developed countries are not serious about their responsibilities."

India got the support of countries like Nigeria, Malawi, and Bolivia.

Nigeria called this proposal a joke, while the Environment Minister of Sierra Leone called it a "lack of intention" of rich countries.

View of rich countries

The US and the European Union claimed that more financial assistance is not possible due to the current global geopolitical and economic crisis.

He also stressed that the list of countries providing climate finance should be updated.

There was a demand to include countries like China, Qatar, and Singapore in it.

China strongly opposed this, saying that the responsibility of reducing greenhouse gas emissions and providing financial assistance lies first with the US and European countries.

Financial demands of developing countries

According to the United Nations 2023 report:

By 2030, developing countries will need $2.4 trillion every year to save them from the climate crisis.

Arab countries have put forward an annual demand of $1.1 trillion.

India and African countries have demanded more than $1 trillion.

But the response of rich countries is far behind these demands.

Debt vs. grant: The root of the controversy

Poor countries criticized the $300 billion proposal, saying that this amount would be given as a loan, while their demand was that it should be given as a grant.

This debt can increase the economic burden on developing countries, which are already facing financial crisis.

Rich countries are avoiding giving direct grants for "loss and damage".

Possible solution of multilateral banks

Multilateral Development Banks (MDBs), such as the World Bank and the Asian Infrastructure Investment Bank, can play an important role in raising climate finance.

These institutions are expected to raise $120 billion every year.

Experts believe that more attention will be given to this in COP30.

What are the expectations from COP30?

Poor and developing countries have more hope from the COP30 conference to be held in Brazil next year.

It is expected that new financial targets will be set to bridge the gap between rich and developing countries.

A clear funding arrangement will also be made for "loss and damage".

Conclusion

The solution to the climate crisis depends on global cooperation and financial commitment. But the results of COP29 have raised the question whether the world is really ready to deal with this challenge. If rich countries continue to turn their back on their responsibilities, then the developing and poor countries as well as the entire humanity will have to suffer the consequences.

COP30 can be the platform where concrete steps can be taken towards ending this inequality.