2.       With the passage of time the requirement for the developing countries has increased and currently estimates for taking climate actions are laying out a case for trillions in new and additional financing. The adequacy of fund remains an issue and scaling up of fund from the developed country Parties is an important requirement for climate resilient future. 

3.       To address the ongoing discourse on climate finance, more attention should be given to principles guiding mobilization of fund from developed countries for climate transition. The Historical responsibility and ‘respective capacities’ should determine the extent of contribution by the developed countries. The sharing of contribution, therefore, could be based on their contribution to the damage and on their respective capabilities. Besides, transparency & accountability, additionality, adequacy & predictability should characterize the flow of finance.

4.      We should draw insights from the Biennial Assessment Report and the experience of inadequacy of finance mobilization. We should also draw insights from the work under the LTF under the Convention. 

5.       There should be an assessment of what the proportion of the 100bn has been with reference to grants vs refundable financial flows, and how those refundable flows are generating revenue for providers, in the case of non-concessional finance. There should also be an assessment of how the 100bn have impacted the funding of the operating entities of the financial mechanism of the UNFCCC. There should also be data on how these flows have managed to calculate adaptation and mitigation impacts, or made reference to specific climate actions and how they have aligned to NDCs. Several insights can be made because at the end of the day, the discussion should not be only on the amount of finance quantified but, on its quality, and impact. 

Response from Abhishek Acharya, India

2.       Several multilateral organisations are now stressing on acceleration of private finance for climate actions in developing countries and LDCs & SIDS as well. The role of public sources of funding would remain critical to mobilizing and leveraging private capital. The extent to which private capital can be mobilized would itself depend on the amount of public sources available to act as a catalyst in attracting and leveraging private capital. Private sector funding would demand a well-defined risk reward profile for its investments. Hence, a significant amount of de-risking of the investment would have to be undertaken through appropriate types of public funding which needs to be discussed.

3.       The capacity for mobilizing private finance is not uniform. Neither can it be considered as the prime mover for finance. It can be at most a leveraging tool, while international public finance needs to be the major force in climate finance from developed to developing countries.

4.      Private finance is mainly focused or interested in making revenue. Therefore, these refundable resources are aimed primarily at mitigation, are not concessional in nature and do not address needs of developing countries. There should be stronger call for the private sector to provide support for adaptation in a non-refundable manner, as a way to enforce their social and environmental responsibility. 
5.  May be it is of importance now to create "enabling environment" in the 'Developed Countries' to guarantee and incentivize climate finance flows through low cost finance and access to them.
Response from Abhishek Acharya India

—     emissions reductions as per the global goal of Article 2 of the UNFCCC; 

—     building the adaptive capacity of developing countries in order to reach the global goal on adaptation (GGA) in the context of sustainable development and poverty eradication; and 

—     address issues of loss and damage particularly in vulnerable countries. 

2.       Climate finance and technology transfer continue being crucial to climate action by developing countries. COP 26, under the Glasgow Climate Pact, has urged developed country Parties to fully deliver on the US$ 100 billion goal urgently and through to 2025. Proactive initiative for quicker fulfillment of the commitment by the developed countries are the key in fulfilling the committed climate actions by developing countries within the defined time line.

Response from Abhishek Acharya, India