A group of four developing countries — Brazil, South Africa, India and China (BASIC) — have said that there is “urgent need for a fundamental transformation and modernisation of the global financial architecture, including a systematic reform of the multilateral development banks to make them fit-for-purpose in supporting sustainable development and just and equitable transitions.”
The four countries stressed that developing countries need “predictable and appropriate support, including climate finance”. This should be at the necessary scope, scale and speed and access to technology and markets to ensure and enable their sustainable development, the statement says.
The statement recounts the achievements of each member country. For instance, it notes India’s initiatives such as renewable energy, e-mobility, 20 per cent ethanol blending in automotive fuels, green hydrogen and updated commitments to the world such as reducing carbon intensity of its GDP.
The statement also expresses “grave concern” that developed countries “are still not showing leadership or responding with a matching progression of effort”. It notes that there has been a backtracking on finance and mitigation commitments and pledges, alongside a “significant increase” in the consumption and production of fossil fuels in the developed world.
“Finance to developing countries is also increasingly with unilateral conditionalities and eligibility criteria, predominantly in the form of loans rather than grants, aggravating the financial constraints faced by developing countries,” the BASIC countries have said, pointing out that many of the pledges to the Adaptation Fund made at COP26 remain unfilled, delivering on the commitment to double adaptation financing remains unclear and there are significant outstanding contributions by developed countries to the Green Climate Fund.”
EU’s surprise
One highlight of Tuesday’s proceedings was what is seen as a U-turn by the European Union, which, shifting its stance, agreed to the call of India that all fossil fuels, rather than coal alone, must be phased down. This is seen as a support to the developing countries, but some also read it as a strategy to soften India and make it ease up on its call for finance.