India on Tuesday highlighted the significant gap in climate funding, stating that developing countries will need over USD 5 trillion to meet their climate goals by 2030.

Union Environment Minister Bhupender Yadav criticised the previously pledged USD 100 billion from developed nations, describing it as ‘too small’ to address the scale of the challenge.

He was speaking at the 19th Sustainability Summit organized by the Confederation of Indian Industry (CII) here.

Yadav pointed out that developed countries, which have historically contributed most to GHG emissions and consumed a large portion of the global carbon budget, had promised USD 100 billion and technology transfer to aid developing nations in their climate efforts.

However, he argued that this commitment has not been fulfilled. Yadav emphasised the disparity in resource needs by noting that if poorer countries like Ethiopia were to adopt the consumption patterns of developed nations, humanity would require the resources of seven Earths to meet global demands.

He also highlighted that India’s consumption patterns are more aligned with those of African nations, reflecting a more sustainable lifestyle.

The Minister underscored the necessity for developing countries to have access to energy for development to ensure a dignified life for their citizens.

The need for financial support for middle-income and poor nations to address climate change will be a key issue at the upcoming UN climate conference in Baku.

At this conference, countries are expected to finalize the New Collective Quantified Goal (NCQG), which will establish a new target for the annual mobilization of funds by developed nations starting in 2025 to support climate action in developing countries.

In 2009, developed countries agreed to mobilize USD 100 billion annually by 2020 to support climate action in developing countries. In 2015, under the Paris Agreement, Parties agreed to extend this goal out to 2025 and to set a new finance goal, from a floor of USD 100 billion per year, for after 2025 taking into account the needs and priorities of developing countries.