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Editorial. Climate farce
Hindu Business Line | English | News | Nov. 14, 2025 | Climate Change
UN climate summits have increasingly become ineffective, with the current one in Belem, Brazil, continuing a trend of unproductive outcomes. Despite extensive scientific evidence on climate change impacts, global efforts to reduce greenhouse gas emissions have largely failed. The core issue lies in the persistent gridlock between the Global North, which refuses to cut emissions adequately or provide financial support, and the Global South, which demands more carbon space to improve living standards.
Geo-economic and geopolitical divides have deepened, particularly between resource-rich countries, including China, and others, further complicating negotiations. Although the impacts of climate change—such as severe storms, floods, and glacial melt—are evident, the UN summits remain ineffective, repeatedly creating new climate finance mechanisms without delivering substantial resources. With the US no longer participating, funding is expected to decrease further, while the climate finance sector has become a source of vested interests and inflated financial demands with little transparency.
The editorial argues that emission reduction responsibilities should be shifted away from international negotiations to be managed by individual countries, entrepreneurs, civil society, and financial institutions. India serves as an example, having developed its own climate finance and transition strategies supported by regulatory bodies like the Securities and Exchange Board of India and the Reserve Bank of India. To successfully fund sustainable projects, blended finance approaches combining private investment with government subsidies and interest subventions will be necessary, as private capital tends to avoid ventures with longer timelines or primarily socio-economic benefits.