The Climate Action and Finance Mobilisation Dialogue (CAFMD) was launched in September 2021 by India and the US. Climate related interventions and actions assume a lot of importance for the IAS exam as climate change and related issues are often seen in the daily news. In this article, you can read all about the Climate Action and Finance Mobilisation Dialogue (CAFMD), its pillars, significance and more.
What is the CAFMD?
The Climate Action and Finance Mobilisation Dialogue (CAFMD) was launched by India and the US as a means that would bring in finances and technology from the US into India for helping India transition from non-renewable energy sources such as coal to more greener alternatives.
- It is one of the two tracks of the India-U.S. Climate and Clean Energy Agenda 2030 partnership, that was established at the Leaders’ Summit on Climate in April 2021.
- The other track of the partnership is the US-India Strategic Clean Energy Partnership (SCEP) which has its focus on emerging fuels or cleaner fuels.
- The CAFMD has three components to it:
- Climate action segment: Under this, both countries would develop proposals to curb emissions.
- Finance mobilisation: Under this second component, focus would be on attracting finances and technologies for India to scale up its renewable energy generation and help achieve the declared target of 450 GW by 2030.
- Climate adaptation and resilience: This component includes measures such as extending the forest cover in India.
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The Climate Action and Finance Mobilisation Dialogue provides both India and the US with an opportunity to enhance cooperation and collaboration on climate change initiatives while addressing the finance aspects of it.
- Apart from increasing India-US bilateral cooperation on climate and environment issues, it can also demonstrate to the global community how economic development and climate action need not be a zero sum game, that is, both can go hand-in-hand.
- It can show how swift climate action can be aligned with inclusive and resilient economic development.
- It is important to invest in energy transition. The world must act now in order to keep 1.5 degree warming limit in reach. This won’t be possible without immediate, rapid and large-scale reductions in greenhouse gas emissions.
Climate Action and Finance Mobilisation Dialogue (CAFMD):- Download PDF Here