Insufficient and delayed: India rejects $300 billion climate finance proposal at COP29

At the COP29 UN climate conference, India firmly rejected the newly proposed climate finance goal of ₹25.3 lakh crore ($300 billion) annually by 2035 for the Global South, labeling it as "insufficient and delayed."

The figure pales in comparison to the ₹109.7 lakh crore ($1.3 trillion) annual funding required by 2030, as repeatedly emphasized by developing countries during negotiations over the past three years.

Representing India, Chandni Raina, Adviser to the Department of Economic Affairs, expressed profound disappointment in the process, citing a lack of inclusivity and respect for country-specific concerns.

"We had informed the presidency and the secretariat about our intent to make a statement before any decision was finalized. However, this process has been manipulated, undermining trust," Raina said.

She criticized the proposal, stating, "The target is too low and set for 2035, which is too far into the future to address the pressing climate challenges we face today. Developing nations require at least ₹109.7 lakh crore ($1.3 trillion) annually by 2030 to meet their climate goals."

Raina also highlighted that the proposed finance framework disregards the principles of Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC).

She emphasized that the package fails to align with the specific needs of developing countries, many of which are disproportionately bearing the brunt of climate change while striving to transition to low-carbon economies without compromising growth.

The Indian delegation expressed dissatisfaction with developed nations’ reluctance to assume adequate responsibility, accusing them of imposing unilateral measures such as the Carbon Border Adjustment Mechanism, which further complicates the already difficult transition for developing economies.

"India unequivocally objects to the adoption of this framework in its current form," Raina asserted, earning applause from a plenary room packed with diplomats, civil society representatives, and journalists.

Global South Unites in Opposition

India’s stance found strong support from fellow developing nations. Nigeria called the proposed package a "joke,"

while Malawi and Bolivia also expressed solidarity. The sentiment was clear: the inadequacy of the deal signals a lack of commitment from wealthier nations to honor their climate responsibilities.

The New Collective Quantified Goal (NCQG), which replaces the earlier ₹8.4 lakh crore ($100 billion) pledge from 2009, sets an annual target of ₹25.3 lakh crore ($300 billion) to be mobilized from public and private, bilateral and multilateral sources by 2035.

However, the broader ambition of ₹109.7 lakh crore ($1.3 trillion) is mentioned only as an aspirational target, with no binding accountability placed on developed nations.

Critics argue that the reliance on "all actors," including private players, dilutes the accountability of developed countries, who bear historical responsibility for global emissions.

Raina concluded by warning that the current deal threatens to undermine the Global South’s capacity to adapt to climate change, jeopardizing their climate goals and sustainable development ambitions. “India cannot endorse this proposal in its present form,” she reiterated.

The rejection underscores the widening gap between developed and developing nations on climate finance, an issue expected to remain contentious as global negotiations continue.