Context: 

Recently, the Bonn climate conference was concluded in Germany.

About the Bonn Climate Conference:

• The Bonn Climate Conference, also known as the United Nations Climate Change Conference or Conference of the Parties (COP), is an annual event organised by the United Nations Framework Convention on Climate Change (UNFCCC).
• The conference brings together representatives from countries around the world to discuss and negotiate actions to address climate change.

Focus Areas:

• To outline the political agenda for the upcoming Conference of Parties­ 28 (COP28) in Dubai.
• To review and reform climate finance architecture.

Key Highlights of Bonn Climate Conference:

• Inadequate Climate Action: Despite being touted as an opportunity for course correction, the conference revealed that current global efforts to address climate change are abysmally inadequate to meet the 1.5 or 2-degree Celsius temperature targets.
• Global Stocktake (GST): 
  • GST is an exercise aimed at assessing the progress in the fight against climate change, and deciding ways and means to enhance global action to bridge the adequacy gap. 
  • It was Mandated by the 2015 Paris Agreement. The Paris Agreement says GST must be conducted every five years, starting in 2023.
  • The technical discussions on GST produced a short ‘framework’ on the elements to be included in the stocktake exercise.

• ‘Historical Responsibility’ Debate: 
  • A bulk of the accumulated greenhouse gas emissions have come from a group of about 40 rich and industrialised countries, usually referred to in Annexure I of the 1992 UN Framework Convention on Climate Change, or UNFCCC.
  • The basis for differentiated burden-sharing between developed and developing countries has been the historical emissions of Annex I countries. 
  • Annexure 1 Countries Argument: 
    • Historical emissions happened at a time “when there was no alternative to fossil fuel based energy sources”, and little understanding or consensus on the harm caused by greenhouse gases.
    • It pointed out that since 1992, about 57% of the carbon dioxide emissions had come from non-Annex I countries, suggesting a shift in responsibility.

• Mitigation Work Programme (MWP): 
  • MWP mechanism was set up at COP26 in Glasgow in 2021 for climate action. 
  • This is a temporary emergency exercise focused only on increasing emission cuts.
  • The developing countries opposed the inclusion of the developed countries’ Mitigation Work Programme in the meeting agenda, saying mitigation efforts cannot be discussed without considering finance.

India’s Initiatives Regarding Climate Finance:

• National Adaptation Fund for Climate Change (NAFCC): 
  • It was established in 2015.
  • Objective: To meet the cost of adaptation to climate change for the State and Union Territories.

• National Clean Energy Fund:
  • An Inter-Ministerial Group manages this fund with the Finance Secretary as the Chairman.
  • Aim: To promote clean energy, and funded through an initial carbon tax on the use of coal by industries.

• National Adaptation Fund:
  • Aim: To bridge the gap between the need and the available funds.
  • It is established with a corpus of Rs. 100 crores  under the aegis of the Ministry of Environment, Forests, and Climate Change (MoEF&CC).

Challenges Ahead:

• Global emissions: Global emissions have to come down by 43% from 2019 levels by 2030 to keep alive hopes of meeting the 1.5-degree target (IPCC).
• Insufficient Funding: Developed countries have an obligation to support developing countries’ climate action plans through financial and technological assistance. 
  • However, there has been a shortage of funds, with developing countries estimated to require US$ 6 trillion dollars to implement their plans. 
  • The annual loss and damage needs of developing countries alone amount to around US$400 billion.
  • Against this, even a minuscule-looking US$ 100 billion per year that the developed countries had committed to raise from 2020 is not fully available.

Way Forward:

• A fresh effort at raising financial resources for climate change is being made in Paris.
• The Summit for a New Global Financial Pact is an attempt at redirecting global financial flows and raising new money to fight climate change.
• The Pact will also help in dealing with associated problems like biodiversity loss and poverty.

News Source: The Indian Express