India will prioritise adaptation efforts to safeguard the country’s rapid economic growth amid decreasing financial commitments for climate action in developing countries that may lead to a reworking of targets, said the Economic Survey tabled in Parliament on Friday.
The survey underlined that coal and other fossil fuels will be the mainstay for energy needs in the medium term because of their reliability. “Lessons learned from the experiences of developed economies underscore the risks of prematurely shutting down thermal energy sources without viable technological alternatives that ensure a stable energy supply,” the survey said.
The survey said establishing a small mobilisation target of $300 billion annually by 2035 is a fraction of the estimated requirement of $5.1-6.8 trillion by 2030. “It is out of sync with the needs of the critical decade when action is required to keep the temperature goals of the Paris Agreement within reach. The decision demonstrates a significant misalignment with the Paris Agreement’s mandate to demonstrate a ‘progression beyond previous efforts’ by developed countries. It underscores the unwillingness of affluent developed nations to assume their equitable share of the responsibility to address emission reduction…” the survey said.
It added India’s ambition to achieve developed nation status by 2047 is fundamentally anchored in the vision of inclusive and sustainable development. Adaptation hence will be key.
India’s Initial Adaptation Communication submitted to the United Nations Framework Convention on Climate Change (UNFCCC) in December 2023 said the expenditure related to adaptation in FY22 was 5.6% of the Gross Domestic Product (GDP). It marked an increase from 3.7% in FY16.
Domestic resources have so far financed climate action with the public sector playing a central role. The international flow of funds is highly inadequate.
The survey said the developed countries were falling short of their Nationally Determined Contributions (NDCs) by about 38%, “Their actions do not reflect the historical responsibility or the leadership in meeting their obligations. The lack of commitment and insufficient delivery of the means of implementation, as mandated in the Paris Agreement, will make the low-carbon transition in developing countries more challenging,” said the survey.
It cited the challenges in harnessing renewable energy and added that India would need to continue the efforts to maximise the efficiency of its existing fossil fuel resources in the medium term. “The advancement and deployment of low-emission thermal power technologies, including Advanced Ultra Super Critical (AUSC) power plants, will play a pivotal role in this transition,” it said.
Investments in research and development related to battery storage technologies and the recycling and sustainable disposal of waste associated with renewable energy systems are critical factors in ensuring a reliable supply of energy from renewable sources and its sustainability.
India’s climate efforts are entwined with the country’s aspirations for high and stable economic growth, which envisions becoming a developed nation by 2047.
The survey said accomplishing the goal of net zero emissions by 2070 will require innovative strategies and robust implementation plans designed to confront challenges posed by climate change and the need for sustainable development to take centre stage. “To strengthen its renewable energy initiatives, India must prioritise investment in extensive grid infrastructure improvements and the secure sourcing of critical minerals necessary for this transformative shift,” the survey said.
The parties to the Paris Agreement are to submit their next version of NDCs at the 2025 United Nations Climate Change Conference (COP 30) in Brazil in November. The survey noted the funding shortfall and said it may lead to a reworking of the climate targets. “Considering that domestic resources will be the key to action, resources for meeting development challenges may be affected, undermining progress toward sustainable development objectives and compromising the integrity of international climate partnerships,” the survey said, indicating India’s strategy in climate negotiations.
The COP29 in Azerbaijan’s Baku last year presented a significant opportunity to serve as a benchmark for international climate cooperation and multilateralism. It had the potential to influence the efficacy of policies on a global scale and strengthen collaborative efforts by enhancing the financial commitments to support climate action in developing countries.