Criticising the developed countries for failing to meet their “commitments” at the COP 29, the Economic Survey on Friday opined that COP 30 could witness an impact on climate targets due to a “funding shortfall”.

It also highlighted that the lack of commitment and insufficient delivery of the means of implementation, as mandated in the Paris Agreement, will make the low-carbon transition in developing countries more challenging

COP30 in 2025 is the COP for Climate Action, before which the parties to the Paris Agreement are to submit their next version of Nationally Determined Contributions (NDCs), the Survey pointed out.

“The funding shortfall may lead to a reworking of the climate targets. Considering that domestic resources will be the key to action, resources for meeting development challenges may be affected, undermining progress toward sustainable development objectives and compromising the integrity of international climate partnerships,” it has warned.

Lack of commitment

The recent outcome of the New Collective Quantified Goal at COP 29 (29th session of the annual climate conference under the UNFCCC) held in Baku in November 2024 on finance presents little optimism about the possibility of support to developing countries, it emphasised.

“With the developed countries also falling short of their Nationally Determined Contributions (NDCs) by about 38 per cent, their actions do not reflect the historical responsibility or the leadership in meeting their obligations,” it added.

Funding shortfall

Establishing a small mobilisation target of $300 billion annually by 2035 is a fraction of the estimated requirement of $5.1-6.8 trillion by 2030, the Survey pointed out.

“It is out of sync with the needs of the critical decade when action is required to keep the temperature goals of the Paris Agreement within reach. The decision demonstrates a significant misalignment with the Paris Agreement’s mandate to demonstrate a ‘progression beyond previous efforts’ by developed countries,” it said.

The Survey emphasised that this action underscores the unwillingness of affluent developed nations to assume their equitable share of the responsibility to address emission reduction and mitigate climate change impacts on vulnerable populations in developing regions.

“The goal contravenes equity and the principle of common but differentiated responsibility in the global climate response by disproportionately placing the burdens of climate change on those nations that have not historically contributed to the crisis,” the survey added.

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