TERI experts reflect on COP29 Outcomes: A missed opportunity for Climate Justice
New Delhi, November 25, 2024: As COP29 concludes, experts from The Energy and Resources Institute (TERI) have voiced strong concerns over the outcomes of COP29, particularly the adoption of the New Collective Quantified Goal (NCQG) of USD 300 billion per year by 2035. The agreement, which was met with categorical objections and walkouts by several nations and blocs, including India, AoSIS, and LDCs, was criticized for failing to meet the financial and operational demands of the developing world to address the climate crisis.
Developing nations express disappointment over insufficient climate finance goals and lack of equity in COP29 agreements, highlighting the need for urgent reforms and solidarity
Dr Vibha Dhawan, Director General, TERI, called the agreement inequitable and inadequate, emphasizing its failure to reflect the urgency of the climate crisis. “India, representing the interests of the Global South, rejected the inequitable agreement and processes on the climate finance goal. COP29 has failed the developing world who are most affected by the climate crisis, a problem they did not cause. The positive aspect of the discussions was a Global South show of solidarity. The hope remains that green technology will be supported by markets, and the government supports adaptation measures through public finance,” she remarked.
Mr RR Rashmi, Distinguished Fellow, TERI, highlighted the inadequacies of the adopted goal, stating, “The goal of USD 300 billion adopted by COP29 in the face of categorical objections of countries including India, Nigeria, Bolivia, Cuba and walk out staged by AoSIS and LDCs bodes ill for the future of the NCQG and the collective efforts to address climate change. The multilateral process has not emerged in good light in this event. The declared goal is clearly a prisoner of the geopolitics of the present times and is paltry compared to the financing needs of mitigation and adaptation faced by the developing world. The 300 billion USD commitment of the developed world is further diluted by the inclusion of debt funds routed through the multilateral development banks. The only positive feature is that the developed countries have agreed to triple the amounts to be channelled through the Global funds like GCF, AF etc. while recognising the need to reform the institutions for easier access to finance and agreeing to drop the insistence on counting voluntary contributions of developing countries as part of NCQG.”
Mr Jiwesh Nandan, Distinguished Fellow, TERI, succinctly remarked, “The resolution adopted yesterday at COP29 is too little, too late and too long duration.”
Dr JV Sharma, Senior Director, TERI, shared his insights on the outcomes of COP29, stating, “Article 6.4 has been operationalized which would help Carbon Finance. TERI is already implementing 40 Carbon finance projects. This is an important decision for us from COP29."
Ms Suruchi Bhadwal, Director, TERI, expressed her view on the conference, stating, “Striking a deal at 300 billion dollars is an understatement of the requirements of developing countries for implementing their climate actions and in NDC compliance.”
Dr Ritu Mathur, Director, TERI, said, “The Closing Plenary of COP29 was shrouded in a cloud of mistrust and disappointment voiced by India as well as other Parties. In particular, the disappointment with regard to the NCQG is both in terms of the miniscule quantum of finance as well as the spread of sources from which it is expected to be mobilized. Compared to the demand put forth by developing countries (at least 1.3 Trillion USD per year), developed countries would provide 300 billion USD per year by 2035 for developing countries to undertake climate action. This level when compared to the earlier pledge of 2009 which committed 100 billion USD per year, hardly represents any major change in real flows, and is probably a target that could be achieved with minimally additional efforts if we account for inflation. That said, 2035 is still a decade ahead, and if the narrative of urgency in climate action is something we believe in globally, the landscape would hopefully evolve further in the interim, with modifications not only in the scale of finance mobilized, but also through partnerships and innovative ways of reducing cost of capital, de-risking investments in new and emerging technologies etc. that would allow greater action and co-operation among all Parties. Re-building trust and keeping in line with CBDR &RC principles is central to moving forward in the true spirit of solidarity.”
Dr Manish Kumar Shrivastava, Associate Director, TERI, shared his views on climate finance at COP29, stating, “Overall, the COP29 outcome has placed the principle of equity within brackets. Developed countries made all efforts to invert the concept of common but differentiated responsibility and respective capability (CBDR&RC). The COP29 outcome on the NCQG is minimal in quantum and delayed in timelines. Developed countries will provide USD 300 billion per year by 2035 through public and private finance, which is meagre compared to the needs of developing countries.”
Dr Shailly Kedia, Associate Director, TERI, expressed grave concerns about the erosion of trust, noting, “At COP29, the USD 300 billion climate finance mobilization goal by 2035 insulted the Global South. India exposed the betrayal, yet developed countries cling to tokenism and erode trust. Climate justice demands ambition, not excuses. Will COP survive this breach of trust, or will the Paris Agreement crumble under the weight of broken commitments? For the world’s most vulnerable countries, these trust breaches are not just frustrating—they are life-threatening. Climate finance is a key instrument that makes the (historical) polluters pay principle actionable. The NCQG’s reliance on private finance feels like building a house on shifting sands. Adaptation needs public and grant-based finance provisioning.”
As the COP29 outcomes show significant gaps in ambition and equity, TERI experts call for rebuilding trust and strengthening the principles of Common but Differentiated Responsibilities and Respective Capabilities (CBDR&RC). They stress the need for innovative financing mechanisms, public funding for adaptation, and enhanced solidarity among all Parties to ensure a just and sustainable climate future.