G20 Presidency: India Firm On Greater Climate Funds From Developed Nations, Says Amitabh Kant — BQ Exclusive

India will push for climate responsibility and financing during its presidency of Group of 20 bloc, according to Amitabh Kant.

The year-long presidency will look to ensure a greater flow of finances from the developed world into the developing world, for both climate action and sustainable development goals, Kant, India's G20 sherpa, said in an interview with BQ Prime last week.

India has not contributed to carbonising the world as much as the developed nations, he said. "Of the total carbon space available, almost about 88% has been occupied by the developed world."

The principle of just transition was accepted the developed world committed to financing the developing world, he said "(But) They have not lived up to it. And, therefore, the key focus will be that of climate finance."

India assumes presidency in the wake of the Covid-19 pandemic, amid looming concerns of a global recession and the ongoing geopolitical tensions in Ukraine.

The pandemic has seen 200 million people in the world go below the poverty line, about 100 million people lose their jobs, global supply chains disrupted and 70 countries facing a global debt crisis, Kant said. "...So the SDGs (Sustainable Development Goals) which are to be implemented by 2030, instead of progressing, they are regressing."

At the recent COP27 summit in Sharm El–Sheikh, Egypt, India had drawn attention to climate finance and developed countries not meeting the target agreed in COP15.

In 2009, at the 15th Climate Summit in Copenhagen, developed countries committed to a collective goal of mobilising $100 billion a year for climate action in developing countries. This target was extended till 2025 in the COP21 Paris Summit, but remained unfulfilled.

India also pitched for a "phase down on all fossil fuels" in the recent COP27 climate conference. While India's language of "phasing down" didn't make it to the final text, the delegates agreed to establish a 'Loss and Damage Fund.'

The fund is a new pooled finance agreement to help countries most affected by climate change. There is still no clarity on how the fund will be effectively contributed to and doled out.

India also hopes to assume the role of the leader of the developing world on a global stage. The current G20 Troika—a group of past, current and incoming G20 hosts—also comprises of developing countries with Indonesia as the predecessor and Brazil as India's successor in December 2023.

Along with contribution the from developed economies, India will also look at how financing from multilateral institutions can foot the bill.

India will call for the restructuring of multilateral financing institutions to become institutions for credit enhancement, for both multilateral and blended finance, according to Kant said. "...That means they move away from direct lending, to indirect lending and therefore will be able to do about 15x more lending than what they do at present."

According to Kant, countries which do not go digital, or which do not go green will be left out. "It is important that we build up a consensus around going green and going digital and using many of the digital public infrastructure that India has built up in many other developing countries of the world," Kant said.

Women-led development, increasing participation of women in leadership roles and discussions on global debt are also on India's list of priorities at the G20.

The first G20 Sherpa meeting kicked off in Udaipur, Rajasthan from the Dec. 4.