China Takes Lead in Climate Finance, Collaborating with India to Drive Global Change

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At the COP30 climate conference in Belem, China is emerging as a key player in international climate finance, teaming up with India to push for a balanced package among developing countries. Beijing is backing developing nations on article 9.1, which demands that developed countries provide climate finance to help developing countries mitigate and adapt to climate change. China's support for developing countries is evident in its stance on article 9.1, with negotiators stating that there is no ambiguity about China's position as a developing nation under the United Nations Framework Convention on Climate Change. This move may help secure a balanced outcome from the conference. India is also playing a significant role in the climate finance negotiations, with both countries coordinating their positions on key issues such as adaptation finance, trade, and the Paris Agreement. They have jointly opposed unilateral trade measures, arguing that they are trade-restrictive and incompatible with equity. China's market dominance in clean energy technologies, particularly solar and wind components, has also contributed to its leadership in climate finance. The country holds a 60% share of the global market for these components and is India's largest trade partner in the solar PV and battery sectors. Experts believe that China's leadership in climate finance is driven by its economic interests in the green transition, as well as its commitment to global climate goals. President Xi Jinping's speech at the Leaders' Summit on Climate and Just Transitions in April emphasized China's commitment to remaining committed to global climate goals. As the EU's climate policies face criticism for being ineffective, India and China are taking the lead in showing the way forward for the region's decarbonization trajectory. Their collaboration on clean-energy trade has the potential to define Asia's energy transition and accelerate growth and decarbonization. The partnership between India and China is expected to continue, with Union Cabinet Minister Bhupender Yadav meeting with China's Special Envoy for Climate Change, Liu Zhenmin, on the sidelines of COP30 to discuss coordination between LMDC countries and the integrity of the Paris Agreement.