COP27. The $100 billion question mark is hovering over

Why is COP27 important?

While there is now a global political consensus to limit global warming to 1.5 degrees, the latest estimates suggest that we are on a global trajectory of 2.5 degrees of increase. The increasing frequency and intensity of extreme weather events is already affecting the lives and livelihoods of millions. The Russian-Ukraine conflict has pushed many developed countries back to fossil fuels. Only 24 countries, including India, have raised their ambitions in the past year under their Nationally Determined Contributions (NDCs), and the COP seeks to increase ambition and achieve agreement among 27 countries.

What is the most important question in COP27?

Developing countries will continue to work hard for a dedicated financing facility or funding channels to compensate for the losses and damages caused by climate change. Egypt’s presidency has listed progress on it as a key goal for COP27, amid constant pushback from the developed world. In fact, our analysis found that none of the developed countries included any reference to loss and damage in their NDCs. The G-77 and China (the bloc comprising developing countries) have requested that loss and damage be included in the COP27 agenda.

What else should we expect from the conference?

There are many finance related discussions on the agenda. The promised $100 billion climate finance is still an ‘ambition’ and not a reality. However, the financing order that would be required for India alone to reach net-zero is upwards of $10 trillion. The talks will focus on mobilizing higher targets to ensure $100 billion by 2023 and achieve the real goals by 2025.

Where does India stand in climate matters?

India is highly vulnerable to the complex effects of climate change, and is today the fourth largest emitter after the US, the European Union and China, which emit significantly more. Prime Minister Modi announced India’s ambition to reach net-zero by 2070 at the last COP. Since then, India has updated its NDC, which aims to reduce the emissions intensity of its GDP by 45% by 2030; To achieve 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030, among others.

What will India emphasize at COP27?

Given the US-China standoff on climate change and Europe’s retreat towards fossil fuels, COP27 is a turning point for India to seek greater accountability on climate action. India can expose the misconceptions of developed countries hitherto unfulfilled promises in climate agreements, urge climate finance to cover losses and damages, and promote a healthy and sustainable way of life.

Shikha Bhasin is a researcher at the Council for Energy, Environment and Water (CEEW).