Annual climate finance requirement estimated to cross $10 trn by 2050: CAG

The annual climate finance requirements are estimated to cross $10 trillion by 2050, and failure to meet the funding demands will intensify socio-economic consequences related to climate-linked disasters, Comptroller and Auditor General of India Girish Chandra Murmu on Tuesday.

Climate financing is key to collective efforts to move towards a more resilient and sustainable future, he said while addressing a one-day seminar on Climate Financing here.

"As climate change intensifies, so does the urgency for robust climate finance mechanisms to fund adaptation, mitigation, and resilience-building efforts worldwide," he said.

The CAG further stated that annual climate finance needs are estimated to increase substantially, reaching well beyond $10 trillion annually by 2050.

"Failing to meet these financial demands will exacerbate the rise in global temperatures, simultaneously intensifying socio-economic consequences of climate-related disasters. Unfortunately, despite the stark cost-benefit analysis, climate finance remains significantly inadequate," Murmu said.

He stressed that the need for immediate action was emphasised by the stark difference between the costs associated with inaction and the potential advantages of making timely investments in low-carbon and climate-resilient pathways.

The CAG said the seminar was a combined effort to unravel the complexities of climate finance and assess its current state through an audit perspective.

The conference served as a platform for a dialogue on climate financing with the sharing of knowledge and experience on various aspects of the theme by experts and enriching discussions, contributing to the success of the conference, an official release added.