According to the G20, under India’s Presidency, developing nations will need $5.9 trillion to execute their NDCs in the years prior to 2030 in order to keep global warming far below 2 degrees Celsius, ideally below 1.5 degrees Celsius. By 2030, developing nations will also need $ 4 trillion annually for renewable energy technology in order to achieve net zero emissions by that year.
A brief about G20 Summit: Developing nations need $5.9 trillion to reach the Paris climate targets
Given that developing countries usually experience financial limitations that prevent them from investing in measures to mitigate climate change and adapt to it, climate finance presents a substantial barrier. Their finances are frequently overstretched by the urgent demands of immediate development goals, such as poverty reduction, healthcare, and education, which causes these constraints. Financial assistance is a crucial prerequisite for the adoption of environmentally friendly technology and renewable energy sources because the upfront expenses of doing so might be exorbitant for these nations.
Developed nations made a big commitment in 2009 to provide $100 billion in yearly climate funding by 2020. It was intended to support climate-related programs in developing countries, assisting them to lessen the effects of climate change and adapt to them, however the objective was not met in the past. Developed nations supplied and mobilized (private funding) a total of $83.3 billion in climate finance in 2020.
The G20 countries have reminded and reaffirmed the developed countries’ commitment to the goal of mobilizing $100 billion in climate finance annually by 2020 and annually through 2025 to address the needs of the developing countries, in the context of meaningful mitigation action and transparency in implementation. This commitment was made under the Delhi Leaders’ Deceleration.
Contributors from developed nations anticipate that this objective will finally be reached in 2023.
As part of the Call on Parties, climate finance will be set at an ambitious, transparent, and trackable New Collective Quantified Goal (NCQG) of $100 billion annually by 2024, while also taking into account the needs and priorities of developing nations in achieving the UNFCCC’s goal and putting the Paris Agreement into effect. The G20 nations are asking the industrialized countries to uphold their pledge to at least double their collective provision of adaptation funding from 2019 levels by 2025, in the context of obtaining scaled up financial resources, in accordance with the Glasgow Climate Pact. There is also a request for all relevant financial institutions, particularly MDBs and multilateral funds, to step up their efforts, especially by publishing, as needed, updated and improved predictions for 2025 and setting ambitious adaptation funding targets.
