• Climate finance entails substantial financial investments directed toward initiatives aimed at either mitigating or adapting to the impacts of climate change.
• In the context of adaptation, it involves proactively addressing the anticipated adverse effects of climate change and implementing measures to prevent or minimize potential damage.
• For instance, constructing infrastructure to safeguard coastal communities against rising sea levels is a tangible example of adaptation measures.
• Conversely, in the realm of mitigation, the focus is on curbing the emission of greenhouse gases (GHGs) into the atmosphere, thereby lessening the severity of climate change impacts.
• Mitigation efforts encompass strategies such as increasing the utilization of renewable energy sources, expanding forest cover, and other measures designed to reduce overall GHG emissions.

Developing nations demand climate finance for several reasons:

• Developed nations have historically emitted far more greenhouse gases than developing nations. Since the Industrial Revolution, the Global North has emitted a disproportionate share of the greenhouse gases that are now causing climate change. While developing nations are now rapidly increasing their emissions, the historical responsibility for the problem lies primarily with developed countries.
• Developing countries are disproportionately vulnerable to the negative impacts of climate change, such as extreme weather events, rising sea levels, and changes in agricultural productivity. They often lack the resources to adapt to these changes and build resilience.
• Developing countries have limited financial resources to invest in clean energy technologies and other climate solutions. They need financial assistance from developed countries to bridge the gap and make these investments.
• The principle of Common But Differentiated Responsibilities (CBDR) is enshrined in the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement. This principle recognizes that all countries have a responsibility to address climate change, but that developed countries have a greater responsibility due to their historical emissions and greater financial capacity.
• Many argue that developed countries have a moral obligation to help developing countries address climate change, as they are the ones who are most vulnerable to its impacts and have the least responsibility for causing the problem.

International Agreements

The demand for climate finance is backed by international agreements, including:

• The 1992 United Nations Framework Convention on Climate Change (UNFCCC) agreement established the principle of CBDR and required developed countries to provide financial assistance to developing countries.
• 2009 Copenhagen Accord Developed countries committed to providing $100 billion per year by 2020 to developing countries.
• The 2015 Paris Agreement reaffirmed the commitment to provide $100 billion per year by 2020 and extended it to 2025.

• As of 2021, the UNFCCC standing committee's analysis suggests that developing countries require a minimum of $5.8 trillion by 2030 to fulfil the objectives outlined in their Nationally Determined Contributions (NDCs).
• These contributions serve as a framework for their initiatives to both reduce national emissions and adapt to the impacts of climate change.
• This translates to an annual need of around $600 billion, a figure significantly below the commitments made by developed nations.
• Complicating matters further, a report from the London School of Economics notes that the lack of available data, tools, and capacity in several countries may result in underestimations of these financial needs.
• Additionally, the UNFCCC estimate does not encompass the substantial expenses incurred by governments to address the impacts of extreme weather events like floods, droughts, and wildfires attributed to climate change.
• These costs are now being considered separately under the funding mechanism for loss and damage, announced by countries at COP27 in 2022 and officially launched during COP28. However, the scale and replenishment cycle of this mechanism remains unclear.
• In a report from 2022, Nicholas Stern, a prominent climate economist, estimated that an annual investment of approximately $2 trillion will be necessary by 2030 to assist developing countries in reducing their greenhouse gas emissions and coping with the consequences of climate breakdown.

Different organizations provide contrasting figures on the amount of climate finance reaching developing countries.

• The Organisation for Economic Cooperation and Development (OECD), largely composed of wealthy nations, reported $83.3 billion provided in 2020.
• Oxfam challenges the data, accusing developed countries of inflating their contributions by as much as 225%. Their estimate places the real value of climate finance provided in 2020 at $21-24.5 billion.
• Developed countries are criticized for offering much of the funding as non-concessional loans, adding to debt burdens in developing nations.
• A study by CARE International revealed that 52% of climate finance between 2011-2020 was diverted from existing development budgets, including critical areas like health, education, and women's rights.

Concerns and implications

• The discrepancy in reported figures raises questions about transparency and accountability in climate finance.
• The prevalence of non-concessional loans increases debt burdens and limits the effectiveness of climate finance in developing countries.
• Diverting funds from essential development priorities can exacerbate existing challenges in developing nations.

6. The Way Forward

The question of how much climate finance reaches developing countries remains contested. Deeper scrutiny and transparency are needed to ensure effective resource allocation and support meaningful climate action in vulnerable nations while safeguarding their development priorities.

RENEWABLE ENERGY

1. Context

2. Why use Renewable energy

• Today we primarily use fossil fuels to heat and power our homes and fuel our cars. 
• It’s convenient to use coal, oil, and natural gas for meeting our energy needs, but we have a limited supply of these fuels on Earth. 
• We’re using them much more rapidly than they are being created. Eventually, they will run out. 
• And because of safety concerns and waste disposal problems, the United States will retire much of its nuclear capacity by 2020. 
• In the meantime, the nation’s energy needs are expected to grow by 33 per cent during the next 20 years. 
• Renewable energy can help fill the gap
• Even if we had an unlimited supply of fossil fuels, using renewable energy is better for the environment. 
• We often call renewable energy technologies “clean” or “green” because they produce few if any pollutants. 
• Burning fossil fuels, however, sends greenhouse gases into the atmosphere, trapping the sun’s heat and contributing to global warming. 
• Climate scientists generally agree that the Earth’s average temperature has risen in the past century. 
• If this trend continues, sea levels will rise, and scientists predict that floods, heat waves, droughts, and other extreme weather conditions could occur more often. 
• Other pollutants are released into the air, soil, and water when fossil fuels are burned. 
• These pollutants take a dramatic toll on the environment—and humans. 
• Air pollution contributes to diseases like asthma. 
• Acid rain from sulfur dioxide and nitrogen oxides harms plants and fish. Nitrogen oxides also contribute to smog.
• Renewable energy will also help us develop energy independence and security. 
• Replacing some of our petroleum with fuels made from plant matter, for example, could save money and strengthen our energy security. 
• Renewable energy is plentiful, and the technologies are improving all the time. 
• There are many ways to use renewable energy. 
• Most of us already use renewable energy in our daily lives.

2.1.Hydropower 

• Hydropower is our most mature and largest source of renewable power, producing about 10 per cent of the nation’s electricity. 
• Existing hydropower capacity is about 77,000 megawatts (MW). Hydropower plants convert the energy in flowing water into electricity. 
• The most common form of hydropower uses a dam on a river to retain a large reservoir of water. Water is released through turbines to generate power.
•  “Run of the river” systems, however, divert water from the river and direct it through a pipeline to a turbine. 
• Hydropower plants produce no air emissions but can affect water quality and wildlife habitats. 

2.2.Bioenergy 

• Bioenergy is the energy derived from biomass (organic matter), such as plants. If you’ve ever burned wood in a fireplace or campfire, you’ve used bioenergy. 
• But we don’t get all of our biomass resources directly from trees or other plants. 
• Many industries, such as those involved in construction or the processing of agricultural products, can create large quantities of unused or residual biomass, which can serve as a bioenergy source. 

2.3.Geothermal Energy 

• The Earth’s core, 4,000 miles below the surface, can reach temperatures of 9000° F. 
• This heat—geothermal energy—flows outward from the core, heating the surrounding area, which can form underground reservoirs of hot water and steam. 
• These reservoirs can be tapped for a variety of uses, such as to generate electricity or heat buildings. 
• By using geothermal heat pumps (GHPs), we can even take advantage of the shallow ground’s stable temperature for heating and cooling buildings. 

2.4.Solar Energy 

• Solar technologies tap directly into the infinite power of the sun and use that energy to produce heat, light, and power.

2.5. Wind Energy 

• For hundreds of years, people have used windmills to harness the wind’s energy. 
• Today’s wind turbines, which operate differently from windmills, are a much more efficient technology. 
• Wind turbine technology may look simple: the wind spins turbine blades around a central hub; the hub is connected to a shaft, which powers a generator to make electricity. 
• However, turbines are highly sophisticated power systems that capture the wind’s energy using new blade designs or airfoils. 
• Modern, mechanical drive systems, combined with advanced generators, convert that energy into electricity. 
• Wind turbines that provide electricity to the utility grid range in size from 50 kW to 6 
• Wind energy has been the fastest growing source of energy since 1990.

2.6.Ocean Energy 

• The ocean can produce two types of energy: thermal energy from the sun’s heat, and mechanical energy from the tides and waves. 
• Ocean thermal energy can be used for many applications, including electricity generation. 
• Electricity conversion systems use either the warm surface water or boil the seawater to turn a turbine, which activates a generator. 
• The electricity conversion of both tidal and wave energy usually involves mechanical devices. 
• A dam is typically used to convert tidal energy into electricity by forcing the water through turbines and activating a generator. 
• Meanwhile, wave energy uses mechanical power to directly activate a generator or to transfer to a working fluid, water, or air, which then drives a turbine/generator.

2.7.Hydrogen 

• Hydrogen is high in energy, yet its use as a fuel produces water as the only emission. 
• Hydrogen is the universe’s most abundant element and also its simplest. 
• A hydrogen atom consists of only one proton and one electron. 
• Despite its abundance and simplicity, it doesn’t occur naturally as a gas on the Earth. 
• Today, industry produces more than 4 trillion cubic feet of hydrogen annually. 
• Most of this hydrogen is produced through a process called reforming, which involves the application of heat to separate hydrogen from carbon. Researchers are developing highly efficient, advanced reformers to produce hydrogen from natural gas for what’s called Proton Exchange Membrane fuel cells.

3. Steps were taken by the government to promote Renewable energy

The Indian renewable energy sector is the fourth most attractive renewable energy market in the world. India was ranked fourth in wind power, fifth in solar power and fourth in renewable power installed capacity, as of 2020.

3.1.Distribution of prominent renewable energy Hubs

• Rajasthan
• Gujarat
• Andhra Pradesh
• Karnataka
• Telangana
• Tamil Nadu

3.2.Steps taken

• Permitting Foreign Direct Investment (FDI) up to 100 per cent under the automatic route,
• Waiver of Inter-State Transmission System (ISTS) charges for inter-state sale of solar and wind power for projects to be commissioned by 30th June 2025,
• Declaration of trajectory for Renewable Purchase Obligation (RPO) up to the year 2022,
• Setting up of Ultra Mega Renewable Energy Parks to provide land and transmission to RE developers on a plug-and-play basis,
• Schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM), Solar Rooftop Phase II, 12000 MW CPSU Scheme Phase II, etc,
• Laying of new transmission lines and creating new sub-station capacity under the Green Energy Corridor Scheme for evacuation of renewable power,
• Setting up of Project Development Cell for attracting and facilitating investments,
• Standard Bidding Guidelines for tariff-based competitive bidding process for procurement of Power from Grid Connected Solar PV and Wind Projects.