Climate financing area of worry, says Sitharaman

PTI, Oct 16, 2021, 8:21 AM IST

India’s Finance Minister Nirmala Sitharaman here said climate financing continues to be an area of worry as she flagged concerns over funding mechanism and technology transfer.

It is unclear how the USD100 billion per year commitment given in the wake of COP21 has been extended, Sitharaman said after the conclusion of her meetings at the International Monetary Fund (IMF) and the World Bank here.

”From my side of course one of the issues that I did raise and it is also something which many people do take cognisance of is we actually don’t know if there were any measures given to measure if money spent on a particular project by somebody will be part of that USD100 billion,” Sitharaman said.

”So, what constitutes USD100 billion? How do we measure if actually USD100 billion has been given or only some of them has been given? So, not just that USD100 billion per year is coming or not but how do we measure that it is indeed coming or not, is also one of the issues,” she said.

Sitharaman said several participants both in the IMF and World Bank meetings highlighted that issue.

”So funding is continuing to be a question of worry for many countries, as much as even the transfer of technology,” she said.

”The issue is, again, as much as it is in the fund, do we know which technology that we are asking for transfer? Do we know which are those things which have to be considered for the debate and transfer of technology,” she said.

Responding to a question, the finance minister asserted that her view on this was not a reflection of her dissatisfaction.

”I’m not stating it’s a statement of this dissatisfaction because India’s commitments are fulfilled. There are only six countries which kept the nationally determined commitments.

India’s more than done it, and also submitted a report to show that this is what we have done. What had to be achieved by 2030, we have achieved already…almost achieved, and now we’ve scaled up our expectations on renewable, we are touching 450 GW,” she said.

”So, I don’t think I can be even for a moment, disappointed or dissatisfied, clearly from our side. We are moving with our own resources in fulfilling our commitments,” the minister said.

There are things to be done, she acknowledged.

”It is reminding, because the level at which many countries are, the levels of development at which each one has to be able to comply with an even a nationally determined commitment itself means a lot,” she said.

Sitharaman also expressed concern over growing oil prices.

”So even as I’m putting more money into renewables and trying to be cleaner in the energy that we produce, this price rise is something which is going to be of worry to me,” she said.

Responding to a question, the finance minister said that sustainable debt funding was discussed during the meetings. In addition to her meetings at the IMF and the World Bank, Sitharaman had more than 25 bilateral engagements. Sitharaman has concluded the Washington DC-leg of her US trip.

From here, she will go to New York for an interactive session with the business community before flying back home. PTI LKJ She started her week-long trip from Boston.