Who should pay for climate damage?

#GS-03 Climate Change, #GS-02 International Relations

The need for Common but Differentiated Responsibilities (CBDR):

Global Carbon Project data show that between 1751 and 2017, 47% of the CO2 emissions came from the U.S. and the EU-28.
Between 1900 and now, developed countries have benefitted from industrial development, which also led to greenhouse gas (GHG) emissions.
Therefore, options like financing the developing or underdeveloped countries by the developed world have been discussed at the COP27.

India is among the top seven emitters of GHG emissions.
But, put in the context of India’s population, its emissions are far lesser per head, than for others.
India remains far below the world average at 2.4 tonnes of CO2 equivalent (tCO2e).
World average per capita GHG emissions were 6.3 tonnes of CO2 equivalent (tCO2e) in 2020.
The U.S. is above this at 14, followed by 13 in the Russian Federation and 9.7 in China.
India along with China, the EU-27, Indonesia, Brazil, the Russian Federation and the U.S plus international transport, accounted for 55% of global GHG emissions in 2020.
Collectively, G-20 members are responsible for 75% of global GHG emissions.

Emissions attributable to the U.S. over 1990-2014 caused losses that are concentrated around 1–2% of per capita GDP across nations in South America, Africa, and South and Southeast Asia.
This has happened because temperature changes have likely impacted labour productivity and agricultural yields.
Climate change-spurred floods could cost Canada $17 billion annually by 2050.
But emissions may have also helped a few countries, such as those in Northern Europe and Canada.
Moody’s Analytics estimates that by the middle of the century, Canada would see a rise in GDP of 0.3% (about $9 billion a year) as warmer climates spur agriculture and labour productivity.

At the G-20 summit in Bali, rich nations including the U.S., Japan and Canada have pledged $20 billion to wean Indonesia off coal.
The U.S. and Japan have led the International Partners Group to mobilise funds from the public and private sector to support Indonesia’s efforts to reach carbon neutrality by 2050.
In addition to last year’s pledge of net-zero emissions by 2070, India has also committed to generate 500 GW of renewable energy capacity by 2030, bringing down emission intensity of GDP, as also raising forest cover.