Funding the energy transition

Context:

The long-term low-carbon development strategy is a fitting response from India. But when it comes to financial responsibility on the pathway to net zero, there is a need for better guidance.

Rift between developing and developed countries

• Financial Responsibility: There is a rift between developed & developing nations on account of asymmetries between the incidence of the financial responsibility assumed for climate change.
• Disproportionate Impact: About 92 percent of historical emissions are attributed to developed countries, still the economic impact of climate change is unfairly borne by developing nations.
• Dual costs of Transition: Costs of shifting away from fossil fuels & of climate catastrophes under the ongoing slowdown, inflation & sovereign debt raises red flags for developing nations.