Climate Justice and the Global South: Who Should Pay for Climate Damage?

Climate change has created a basic asymmetry: countries that contributed least to cumulative emissions often suffer most from floods, heatwaves and cyclones. Climate justice is therefore the Global South's central demand in climate finance negotiations.

Historical Responsibility

  • Developed countries account for the bulk of cumulative CO₂ emissions, while India's share is only around 3 to 4%.
  • Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC) and the polluter pays principle hold that those who caused more harm should bear more cost. Article 9 of the Paris Agreement obliges developed countries to provide finance.
  • The debate has shifted from aid to compensation for loss and damage.

Where Finance Stands

  • The $100 billion annual pledge was met late, and much of it came as loans, adding to debt.
  • The Loss and Damage Fund (COP27, COP28) remains small relative to needs.
  • New Collective Quantified Goal (NCQG), COP29: $300 billion a year by 2035, which developing countries called inadequate.
  • The International Court of Justice's (ICJ) 2025 advisory opinion affirmed binding state obligations on climate protection.

Carbon Pricing and India's Stance

  • Linking transfers to carbon pricing combines past responsibility with future incentives, but it must account for energy access and protect the poor.
  • India treats finance as a legal obligation, wants it grant-based and predictable, and opposes unilateral measures like the EU's Carbon Border Adjustment Mechanism (CBAM).

Challenges

Attribution of damage, governance of funds, conditionality and weak accounting remain unresolved.

Way Forward

  • Prioritise grants over loans.
  • Adopt transparent accounting standards.
  • Reform and scale up the Loss and Damage Fund.
  • Ensure technology transfer and adaptation finance.

Conclusion

Climate action must not become another constraint on development. Those who contributed more to the problem should pay more, through predictable, transparent and equitable mechanisms.