Climate Imperialism: West is again squeezing India, China for money

Developing nations required more than $ 5 trillion to achieve their climate objectives by 2030, Union Environment Minister Bhupender Yadav stated on Tuesday, emphasising that the previously pledged $ 100 billion from developed countries was insufficient.

Speaking at the 19th Sustainability Summit organised by the Confederation of Indian Industry (CII), Yadav highlighted that developed nations, which have historically contributed the majority of greenhouse gas emissions and have utilised a bulk of the global carbon budget, committed to providing USD 100 billion along with technology transfer to assist developing countries in addressing climate change.

"But they failed on both fronts... Now, developing countries need more than USD five trillion. USD 100 billion is too small an amount," the minister said. He further noted that if poorer countries, such as Ethiopia, were to emulate the consumption habits of developed nations, it would necessitate the resources equivalent to seven Earths to satisfy global demands.

Yadav remarked that India's consumption patterns are similar to those of African nations, reflecting their sustainable lifestyles. He asserted that developing countries require energy for their development to ensure a dignified existence for their populations.

The provision of financial assistance to middle-income and low-income nations for climate change mitigation will be a key topic at the forthcoming UN climate conference in Baku, where nations are expected to finalize the New Collective Quantified Goal (NCQG). This new target will outline the annual amount that developed countries are obligated to mobilise starting in 2025 to support climate initiatives in developing nations.

Historically, the countries that have contributed the most to pollution, global warming, and climate change are those that have industrialised early, primarily in the West. Here’s a breakdown:

Top polluters in the past

1. United States: The US has been responsible for about 25% of cumulative global CO₂ emissions since the start of the Industrial Revolution. Its heavy reliance on fossil fuels for energy production and transportation has made it one of the largest contributors to global warming.
2. European Union (EU): The EU collectively has been responsible for approximately 22% of historical emissions. Early industrialisation, particularly in countries like the UK and Germany, has had long-lasting environmental impacts.
3. China: Although China’s contribution to cumulative emissions is smaller compared to the US and EU, it has overtaken them as the largest annual emitter of greenhouse gases in recent years, responsible for around 30% of global emissions annually.
4. Russia: Historically, Russia (and the former Soviet Union) has been a major polluter due to its reliance on coal and natural gas.
5. India: While India’s per capita emissions are lower than those of developed nations, its total emissions have risen substantially in recent years, making it the third-largest emitter annually, primarily due to its growing economy and coal use.

Top polluters currently

1. China: Responsible for around 30% of global emissions annually, driven by industrial production, coal use, and rapid urbanisation.
2. United States: Currently the second-largest annual emitter, producing around 13-15% of global CO₂ emissions.
3. European Union: Collectively, the EU accounts for about 8-9% of global annual emissions.
4. India: As the third-largest annual emitter, India contributes about 7% to global emissions.

Cumulative versus current emissions

Developed countries like the US, EU nations, and Japan bear greater responsibility for historical emissions while developing countries like China and India have risen to the top of current emission rankings due to their rapid industrial growth.

Per capita emissions in developed countries still tend to be much higher compared to developing nations, despite the latter’s growing economies.

Investment needs for clean energy

Several international bodies have calculated the investment required for a global shift to clean energy:

1. International Energy Agency (IEA): The IEA estimates that annual clean energy investment needs to reach around $4 trillion by 2030 to meet net-zero emissions targets by 2050. For developing nations, this figure is a humongous challenge as their energy transition is more capital-intensive and they face greater financing gaps.
2. United Nations Framework Convention on Climate Change (UNFCCC): Under the Paris Agreement, developed countries committed to mobilising $100 billion annually to support climate action in developing countries by 2020, though this target has been delayed.
3. World Bank: In 2021, the World Bank estimated that $90 trillion is required by 2030 for sustainable infrastructure worldwide, much of which involves transitioning to clean energy.
4. Climate Policy Initiative (CPI): CPI reports that investments in clean energy need to triple from current levels, reaching $4.3 trillion annually by 2030 to meet the Paris Agreement targets.

Developed versus developing nations' needs

• Developed nations: Countries like the US, EU, and Japan need to invest heavily in retrofitting their existing infrastructure for renewable energy, enhancing grid capacities, and decarbonising industries.
• Developing nations: Countries like India, China, and African nations face a greater need to invest in new renewable energy capacity, as well as infrastructure for electric vehicles, public transport, and green industries. Their financing gap is larger due to economic constraints and the need for international financial support.

Global efforts like the Green Climate Fund (GCF) and public-private partnerships are critical to helping both developed and developing nations meet their clean energy goals. However, the funding gap remains a big challenge for meeting global climate targets.