COP29: India to focus on equity in climate finance as big names skip talks

India will continue to be vocal about the need for adequate climate finance funds for the Global South, emphasizing that developed nations should still take the lead in mitigation and finance, sources close to the Indian delegation present at the UN Climate Change Conference in Baku told S&P Global Commodity Insights Nov. 12.

"India will continue to call for respecting the equity and principle of the common but differentiated responsibilities, which recognizes that while climate change is a global issue, developed nations bear a greater historical responsibility for emissions," according to a draft of its upcoming press statement, shared by a source.

COP29 must hold the principle and provisions of the UN Framework Convention on Climate Change and its Paris Agreement, "and prevent the imposition of undue obligations on developing nations," the draft added.

Bhupender Yadav, the country's minister for environment, forest and climate change is expected to skip the global climate summit, and talks will be led by his deputy Kirti Vardhan Singh.

The country's prime minister Narendra Modi, who visited COP28 in Dubai last year, will also not be coming to COP29, which runs through until Nov. 22. Instead, Modi will visit the G20 Summit in Brazil's Rio De Janeiro, taking place from Nov. 18-19.

NCQG focus

India acknowledged that it hopes to play an active role in discussions around the New Collective Quantified Goal, which will replace the $100 billion/year fund established as part of the Paris Agreement in 2015.

"Initial stage discussions have been held on the NCQG -- there is no clarity yet," RR Rashmi, distinguished fellow at a research institute, who is attending COP29, told Commodity Insights. "The text is there, it has been discussed and informally, the discussions are going on."

COP29 should maintain balance and highlight the urgency of addressing adaptation needs, particularly for vulnerable communities in developing countries, and ensure climate finance is adequate, accessible, grant based, low interest and for the long term, the draft added.

A spokesperson at the environment, forest and climate change ministry was immediately unavailable for comment.

Rashmi said he wasn't reading much into the absence of Yadav as the agenda was set out and negotiations were on by the designated officials.

India's emissions (excluding CCUS) are set to rise from 3.97 billion mt GHG in 2023 to 5.13 billion mt GHG by 2040, data from Commodity Insights shows. Emissions from India are expected to keep rising well into the 2050s, according to estimates by experts.

Article 6.4 framework welcomed

Guidelines underpinning a UN-regulated global carbon market under Article 6.4 of the Paris Agreement were endorsed by almost 200 governments including India, at the COP29 climate talks in Baku Nov. 11.

The Indian government's draft statement said it was against unfair barriers to trade or development and wanted the carbon markets to address the technology and financing gaps for supporting developing nations.

Article 6.4 sets out rules for a carbon crediting mechanism, whereby an entity can reduce emissions in one country, have the reductions credited, and then sell them to another entity in another country.

A carbon industry consultant welcomed the endorsement of the framework of Article 6.4, saying the new standards enhance credibility for projects like reforestation and clean cooking, benefiting communities worldwide.

"By establishing clear and robust standards, we can ensure that investments in carbon reduction deliver genuine and sustainable benefits, especially to vulnerable communities who need it most," Manish Dabkara, chairman and managing director of EKI Energy said.

EKI Energy cited the International Emissions Trading Association, saying the total trading in the UN-backed market could by 2030 generate $250 billion a year and cut 5 billion mt of carbon output annually.

A number of pledges could be also coming up at COP29, which are up to the nations to sign such as low-carbon hydrogen, biofuels and battery storage, Rashmi said, with each day fostering one theme.

Platts, part of S&P Global Commodity Insights, assessed the Generic ACCU price at A$40.05/mtCO2e ($26.25/mtCO2e) Nov. 12, up 8.68% from a month ago.

Platts assessed Korean Allowance units at Won 11,400/mtCO2e ($8.12/mtCO2e) on Nov. 12, up 15.15 from a month ago.