The Climate-Development Nexus: Equity, Development, and Finance in Net-Zero Pathways

As the global community deliberate on accelerating efforts toward achieving net-zero emissions, the intersection of climate action and development priorities has never been more critical. The long-term net-zero targets demand that transition pathways also serve as the desired development pathways for countries, thereby enhancing their economic stability and citizens' well-being. The appropriateness of global and national transition pathways would depend on whether their developmental impacts are equitable across and within countries.

Equally important is the timely availability of affordable finance. At COP 29, the Parties agreed to work towards mobilizing USD 1.3 trillion in financial flows to developing countries by 2035, a target deemed inadequate in light of cost estimates for meeting the net-zero targets. Globally, the need to mobilize finance is even greater. The finance roadmap expected at COP30 will have to balance the scale of global financial needs, strategies for mobilization, and mechanisms for equitable distribution across countries and sectors. The cost of capital for mobilizing these huge volumes is a concern, given that many countries face higher debt-to-GDP ratios, making their economic stability vulnerable. The agenda of mobilizing equitable finance at scale, therefore, is an agenda of innovation in financing instruments and governance.

To deliberate on these issues, this event brings together experts from the modeling community in developed and developing countries to understand the development, equity, and financial implications of net-zero transition pathways for the global economy and national economies, drawing from two multi-country decarbonization projects- ELEVATE and NEWPATHWAYS. It also offers perspectives on strategies for financing these transition pathways, including international cooperation, innovative instruments, and political brokerages.

This dialogue will explore how countries can navigate the complex terrain of climate transitions while safeguarding development goals and ensuring equity. It will highlight how diverse development contexts shape the pathways to net-zero. These scenarios are not just technical exercises—they are essential tools for assessing policy options, understanding trade-offs, and making informed decisions that align with the principle of equity. It will examine how governance frameworks, access modalities, and institutional arrangements can support timely and just transitions, especially for developing countries facing unique vulnerabilities and constraints.

By integrating perspectives on equity, development, and finance, this event aims to foster a deeper understanding of how climate action can be both ambitious and inclusive—ensuring that no country or community is left behind in the journey toward a sustainable future.

TERI Speakers: Dr. Vibha Dhawan, Dr. Ritu Mathur, Dr. Manish Kumar Shrivastava