Date : 22/12/2023

Relevance: GS Paper 3 – Environment and Ecology

Keywords: Loss and Damage Fund, Global Stocktake(GST), CHG, Global Methane Pledge

Context-

The 28th session of the Conference of the Parties (COP) unfolded in Dubai, marking a crucial juncture in global efforts to address climate change. With a focus on mitigation, adaptation, financing, and the nuanced dynamics between developed and developing nations, COP-28 aimed to propel the world towards a greener and more sustainable future. This comprehensive analysis will look into the outcomes of COP-28, examining the establishment of the Loss and Damage fund, the implications of the first Global Stocktake (GST), advancements in green finance mechanisms, and India's stance on health and methane reduction declarations.

Loss and Damage Fund:

• One of the significant outcomes of COP-28 was the operationalization of the Loss and Damage (L&D) fund, building upon the agreement established at COP-27.
• Despite this milestone, concerns arose as only a modest $790 million was pledged, falling significantly short of the required annual corpus ranging from $100 billion to over $400 billion.
• The United States, as the largest historical emitter, committed a mere $17.5 million, raising questions about the adequacy of contributions from developed nations.

Moreover, the decision to entrust the World Bank with overseeing and administering the fund raised apprehensions among developing countries. Issues regarding legal autonomy, flexibility, decision-making authority, and skepticism about the fund's responsiveness to emergencies emerged. A prevailing sentiment among nations underscored the need for affected communities to directly access funding, preferably in the form of grants rather than loans, to address climate-related disasters.

Global Stocktake (GST):

• COP-28 witnessed the inaugural Global Stocktake (GST), a pivotal mechanism enabling countries to collectively assess progress towards the goals of the Paris Agreement.
• While the commitment to transition away from fossil fuels and triple renewable energy capacity by 2030 was a notable stride, limitations surfaced.
• The transition from fossil fuels was confined to energy systems, allowing their continued use in plastics, transport, and agriculture sectors.
• The declaration also introduced the concept of 'transitional fuels,' such as natural gas, raising concerns about maintaining the status quo in various industries.
• Furthermore, the call for accelerated climate mitigation referenced unproven and risky technologies like carbon capture and storage (CCS) and carbon removal, introducing an element of uncertainty in the pursuit of climate justice.

Green Finance Mechanisms:

• Addressing the critical aspect of financing, COP-28 recognized the responsibility of developed nations to lead in climate finance.
• The financial segment of the GST framework emphasized the private sector's role in addressing financial shortfalls and advocated for supplementing grant-oriented, concessional finance to facilitate an equitable transition in developing countries.
• Innovative global green finance mechanisms were introduced, with the Green Climate Fund receiving fresh support of $3.5 billion and the Adaptation Fund securing an additional $188 million.
• Partnerships between the public and private sectors were forged to mobilize investments in renewable energy, sustainable agriculture, and infrastructure.
• The introduction of ALTÉRRA, an investment initiative aspiring to mobilize $250 billion globally by 2030, showcased a commitment to transformative financial initiatives.

However, despite these efforts, available funds fell short of the estimated $194-366 billion annual funding requirement for adaptation, highlighting the persistent challenge of securing adequate resources for climate action.

India's Position at COP-28:

• India's participation in COP-28 was marked by distinctive stances on crucial declarations.
• While the UAE declaration on climate and health, signed by 123 countries committing $1 billion to address climate-health issues, gained momentum, India opted not to sign.
• The rationale was rooted in the potential impact on healthcare infrastructure, particularly in rural areas, as reducing greenhouse gas (GHG) emissions in the health sector could compromise essential healthcare requirements.

The Global Methane Pledge, focused on reducing methane emissions, received renewed attention at COP-28, with over 150 countries signing. India, however, did not sign, citing a shift from carbon dioxide to methane and emphasizing the lower lifetime impact of methane. India's specific methane emissions, primarily from rice cultivation and livestock rearing, were considered essential for the livelihoods of small and marginal farmers.

Key Takeaways:

COP-28 marked several unprecedented developments, including the declaration on climate and health, acknowledgment of nature-based solutions for biodiversity conservation and climate, and a commitment by 134 countries to transition to sustainable and resilient food systems. However, challenges persist, notably in the contentious realm of fossil-fuel subsidies. While developed nations advocated for their phased withdrawal, developing countries, including India, resisted, citing implications for economic growth, development, and social ramifications.
Contentious issues extended to market mechanisms, financial resource allocation, the role of the World Bank in managing the L&D fund, and private sector engagement in climate action. The commitment to ramp up renewable energy targets was a positive step forward. Still, concerns lingered regarding L&D metrics, fund management, market mechanisms, risky technologies, the continued use of fossil fuels in various sectors, and the role of natural gas as a transitional fuel.

Conclusion

COP-28 yielded a mixed bag of outcomes, showcasing progress in some areas while underscoring the need for continued global collaboration and resolution of persistent challenges. The establishment of the Loss and Damage fund, the initiation of the Global Stocktake, and advancements in green finance mechanisms signify positive strides. However, the disparities between developed and developing nations, particularly on issues like fossil-fuel subsidies, necessitate further dialogue and consensus-building.
The commitments made at COP-28, while significant, highlight the complexity of navigating the diverse interests and priorities of nations in the pursuit of collective climate action. As the world grapples with the urgency of the climate crisis, the outcomes of COP-28 serve as a foundation for ongoing efforts, emphasizing the ongoing need for robust international cooperation and sustained commitment to building a resilient and sustainable future.

Source- The Hindu