Multi-trillion-dollar climate financing gap in crucial Hindu Kush Himalayas: Report

Kathmandu, Jan 5 (PTI) The Hindu Kush Himalaya, a vital water source for billions in the region, faces a staggering climate financing shortfall, requiring around USD 12 trillion from 2020 to 2050, according to a new regional analysis.

According to the report by the International Centre for Integrated Mountain Development (ICIMOD), current financial commitments are insufficient to address the region’s adaptation and mitigation needs.

The ICIMOD is an inter-governmental organisation for the eight countries of the Hindu Kush Himalayan (HKH) region – Afghanistan, Bangladesh, Bhutan, China, India, Myanmar, Nepal and Pakistan – that stretches for almost 3,500 km.

The report estimates the HKH region requires approximately USD 12.065 trillion from 2020 to 2050 for climate mitigation and adaptation, amounting to an annual average of USD 768.68 billion.

China and India account for 92.4 per cent of the total projected need.  “Mobilising the ambitious target of USD 12 trillion is like climbing the Everest of funding,” said Ghulam Ali, Innovative Investment Specialist and lead author of the report.

“The strategy to mobilise these resources has to be creative, comprehensive, and collective to achieve such significant goals.” “Evidence and analysis are an important part of advocating and influencing policy development for climate financing in the region,” said Pema Gyamtsho, Director General of ICIMOD.

“The grounded data this report offers enhances understanding of the actions required to address the financial needs of our region to build economic resilience.”    The report identifies a stark disparity in climate vulnerability and financial capacity.

Countries highly exposed to climate effects, including Bangladesh, Bhutan, India, Myanmar, Nepal, and Pakistan, are also the least equipped to manage these risks, says the report.

The HKH region faces an adaptation burden far exceeding global averages, forcing nations like Afghanistan, Nepal, and Pakistan to spend significantly more than income-group averages on disasters and adaptation, trapping them in a cycle of repair with limited funds for other needs.  "The crisis is framed as an economic equality issue. The annual per capita climate finance needs range from as low as USD 24 in some countries to over USD 2,126 in others, representing 6 per cent of GDP to a crippling 57 per cent, respectively." This places immense pressure on policymakers who are facing trade-offs between development and survival for vulnerable populations, says the report.

To bridge the funding gap, the report recommends a three-track approach: improve access to existing multilateral funds, pioneer innovative mechanisms like debt-for-climate swaps, and increase public spending for mountains and environmentally sensitive areas.  The report titled ’Climate Finance Synthesis Report: Needs, Flow and Gaps in the Hindu Kush Himalaya Countries’ was launched at the “Enhancing Climate Actions in the Hindu Kush Himalaya” conference in Paro, Bhutan. PTI SBP GRS GRS GRS