Climate Finance

Why in News?

• The developing countries are worried about the climate finance which can be explicitly seen in the Bonn Convention

About

• Climate finance refers to local, national or transnational financing drawn from public, private and alternative sources of financing that seeks to support mitigation and adaptation actions that will address climate change
• Higher investment in mitigation projects lead to a reduction in carbon emission — a global public good that benefits everyone, including the donor country
• Such investments also bring international recognition for being “climate conscious” as project outcomes are clearly visible and measurable
• In 2009, at the COP15 Summit in Copenhagen, developed countries committed to jointly mobilise 100 billion dollar a year for climate finance so that developing nations can take effective actions
• The Paris Agreement reaffirms the obligations of developed countries, while encouraging voluntary contributions by other Parties
• But now, the developed countries are forcing developing nations to commit to an unreasonable target of reducing carbon emissions to net-zero by mid-century