The first paragraph identifies the main topics covered in the article, including the findings of Oxfam International’s recent report on Climate Finance, the need for rich countries to take responsibility for climate change, and an explanation of what Climate Finance is.
Oxfam International: A High-Level Overview
Oxfam International is a collection of independent non-governmental organisations, which was established in 1995. The name “Oxfam” has its origins in the Oxford Committee for Famine Relief, which was set up in Britain during World War II to campaign for food supplies for starving women and children in enemy-occupied Greece. Boasting a Secretariat based in Nairobi, Kenya, Oxfam International’s aim is to maximise efficiency and have a greater impact in reducing global poverty and injustice.
Critical Findings from Recent Reports
According to a recent report by Oxfam International, the United Nations (UN) now needs eight times more Climate Finance than 20 years ago to provide humanitarian aid to Low-Income Countries during Climate-Related Disasters such as droughts, floods, and wildfires. Over the past two decades, the UN’s appeals for humanitarian aid have skyrocketed by an astounding 819%, from USD 1.6 billion in 2000-02 to an average of USD 15.5 billion in 2019-2021. However, richer nations have only been able to fulfil 54% of these appeals over the last five years, leaving a massive deficit of USD 28-USD 33 billion.
Climate-Related Disasters and their Impact
Climate-related disasters disproportionately affect people in low-income countries, exacerbating poverty and death rates. In addition to the significant financial burden, the climate crisis also poses risks to health, biodiversity, indigenous knowledge and gender-related issues among other factors. It is estimated that by 2030, the economic cost of loss and damage due to climate change will rise to between USD 290 and USD 580 billion.
Recommendations for Future Action
The report recommends that the costs of climate-driven loss and damages should be paid on the basis of responsibility, not charity. This implies that rich countries, affluent individuals, and large corporations – the entities most responsible for causing climate change – must pay for the harm they are causing. The report also suggested the need to establish a facility to attract innovative sources of finance from richer countries for Climate Finance.
Understanding Climate Finance
Climate finance involves local, national, or transnational financing from public, private and alternative sources that support actions aimed at mitigating and adapting to climate change. It plays a crucial role in reducing emissions and in helping communities adapt to the adverse impacts of a changing climate. Principles governing climate finance include the ‘polluter pays’ principle, Common but Differentiated Responsibility and Respective Capability (CBDR–RC), additionality, adequacy & precaution, and predictability.
Questions to Understand the Topic Further
To further understand the topic, some previous year questions from the UPSC Civil Services Examination are provided. For instance, a question from the 2015 examination asked about the Green Climate Fund, a fund intended to assist developing countries in their adaptation and mitigation efforts against climate change.
