Climate finance, MDB reforms must move together, says N K Singh; calls for stronger global cooperation

Climate finance and reforms of multilateral development banks (MDBs) must advance together to support sustainable development and the global green transition, former Finance Commission Chairman N.K. Singh said, asserting that development and climate action can no longer be treated as separate agendas.

Speaking at the launch of the High-Level Empowered Board on Green Transition at the London School of Economics during London Climate Action Week, Singh said climate-related challenges have become inseparable from international development and cooperation.

"We cannot leave issues of climate-related complexities out of international development and international cooperation," Singh said. Drawing on his experience chairing the G20 Independent Expert Group on MDB reforms, he added that reforms of multilateral development banks and climate finance are "flip sides of the same story" of creating shared prosperity on a livable planet.

India's twin long-term commitments

Singh said India has committed itself to two major long-term goals—becoming a Viksit Bharat by 2047 and achieving net-zero emissions by 2070.

He noted that NITI Aayog has prepared a roadmap outlining the actions required to achieve the country's net-zero target, describing it as a "constellation of action" spanning multiple sectors.

Singh said discussions also focused on how renewable sources such as solar and wind can be harnessed, noting that doing so would require a constellation of policy changes.

Policy reforms critical for renewable energy

Singh said harnessing renewable energy requires much more than investment alone.

"It requires a constellation of policy changes," Singh said, adding that harnessing renewable energy would require tax policies, incentives and rationalisation of subsidies to fully harness solar energy, wind energy and other renewable sources.

He also stressed the need to integrate agricultural development with climate initiatives. Referring to recent remarks by the UN Secretary-General, Singh said methane emissions must form an integral part of agricultural strategies. He added that issues such as carbon capture, carbon storage and carbon pricing were also discussed during the board's inaugural meeting.

Global climate action must continue

Referring to recent developments in global climate diplomacy, Singh said the withdrawal of the world's largest historical and per-capita emitter from international climate processes should not weaken global efforts.

He said countries should continue working through "willing coalitions" and pointed out that several multilateral development banks are able to take decisions without the United States being the determining or inhibiting shareholder. He reiterated that development and climate "are not two separate compartments" but form "the same integral story."

Board to submit recommendations

The High-Level Empowered Board on Green Transition will continue its work over the next two years, with its next meeting proposed to be held in Bangkok alongside the IMF-World Bank Annual Meetings.

Singh said the board will present an initial report at the next Raisina Dialogue before bringing the broader conclusions of its work to the attention of policymakers in India. He said the group's discussions will continue as it works on issues relating to climate finance, development cooperation and the global green transition.

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