Ahead of the United Nations Conference of Parties (COP24) held in Katowice, Poland, the grouping known as the BASIC countries, composed of Brazil, South Africa, India, and China, reaffirmed their dedication to continue pressurizing developed countries. The idea is to spring them into meeting their agreement of providing $100 billion annually beginning from 2020.
Previous Commitments and Their Progress
These commitments were made during the COP21 of the United Nations Framework Convention on Climate Change (UNFCCC) based in Paris back in 2015. Following the principle of “common but differentiated responsibility and respective capabilities,” developed countries pledged to contribute $100 billion each year to support the mitigation and adaptation efforts against climate change in poorer and developing economies. However, the progress made towards achieving the set $100 billion a year to assist these nations has been notably slow. A consensus still needs to be reached regarding what defines climate finance. This includes whether investments by private companies in developed countries directed towards new green technology should be considered, or if improving efficiency in a thermal plant falls under this category.
Findings of the Intergovernmental Panel on Climate Change (IPCC)
In addition to this, the four nations shed light on the findings of the IPCC’s special report on global warming of 1.5C. This report details the high vulnerability of developing countries to the effects of climate change as well as the staggering costs associated with adaptation.
Purpose and Actions of The BASIC Grouping
The BASIC group is comprised of four considerable nations – Brazil, South Africa, India, and China. Established in 2009, their purpose lies in pushing richer nations towards fulfilling their climate change commitments. Recently, India hosted meetings with a collection of countries known as the Like-Minded Developing Countries (LMDC) which includes India, China, Venezuela, and Iran among others, to confer about climate change-related issues.
Understanding Climate Finance
Climate finance refers to local, national, or transnational financing—sourced from public, private, and alternative funding—that aims to support mitigation and adaptation actions tackling climate change. In order to simplify the provision of climate finance, the UNFCCC states that the operation of the financial mechanism can be entrusted to one or more existing international entities.
| Name | Function | Established |
|---|---|---|
| Global Environment Facility (GEF) | Addresses global environmental issues | Since the UNFCCC’s entry into force in 1994 |
| Green Climate Fund (GCF) | The financial mechanism of the UNFCCC | COP-16 in Cancun, Mexico 2010 |
| Adaptation Fund (AF) | Financed with a share of proceeds from Clean Development Mechanism (CDM) project activities | Under the Kyoto Protocol in 2001 |
Specific Climate Change Funds
The Global Environment Facility (GEF) has operated as an entity of the financial mechanism since the UNFCCC’s beginning in 1994. The GEF is an international partnership of 183 countries, international institutions, civil society organizations, and the private sector dedicated to addressing global environmental issues. It is situated in Washington DC, United States, and also manages two special funds, namely the Special Climate Change Fund (SCCF) and the Least Developed Countries Fund (LDCF).
The Green Climate Fund (GCF) is another crucial player in this arena. Established at COP-16 in Cancun, Mexico during 2010, it functions as the financial mechanism of the UNFCCC. Its implementation in India for the GCF is handled by the National Bank for Agriculture and Rural Development (NABARD) and Small Industries Development Bank of India (SIDBI). The fund gives special consideration to societies highly vulnerable to the effects of climate change, especially Least Developed Countries (LDCs), Small Island Developing States (SIDS), and African States.
Adaptation Fund: A Separate Funding Body
A separate entity known as the Adaptation Fund was instated under the Kyoto Protocol in 2001. This fund is financed by a portion of the proceeds from the Clean Development Mechanism (CDM) project activities and other sources of funding. The CDM allows emission-reduction projects in developing countries to earn Certified Emission Reduction (CER) credits, each equivalent to one tonne of CO2. These CERs can be traded, sold, and used by industrialized countries to meet a part of their emission reduction targets under the Kyoto Protocol.
