India proposes a dedicated multilateral fund under the plastic pollution treaty at INC-5
On 27 November 2024 at INC-5 in Busan, Republic of Korea, India proposed a dedicated multilateral fund under the new plastic pollution treaty to give grant-based finance to developing countries.
Summary
On 27 November 2024, at the fifth session of the Intergovernmental Negotiating Committee (INC-5) in Busan, Republic of Korea, India proposed a dedicated multilateral fund for the new international legally binding instrument on plastic pollution. The proposal links compliance by developing countries to developed countries meeting the incremental costs of their transition. The fund would provide grant-based finance to developing countries, with developed countries contributing. India also proposed a subsidiary body with equal representation of developed and developing countries to set the fund's policies and disbursement. India said the model has long operated under the Montreal Protocol on ozone-depleting substances. The INC was mandated by a 2022 resolution of the fifth UN Environment Assembly (UNEA-5).
Key facts
- Forum
- INC-5, Busan (Republic of Korea)
- Proposal
- Dedicated multilateral fund — grant-based finance for developing countries
- Condition
- Developing-country compliance linked to developed countries meeting incremental transition costs
- Governance
- Subsidiary body with equal developed/developing representation
- Model
- Montreal Protocol's multilateral fund
Practice MCQs 2 questions
India's proposed financial mechanism for the plastic pollution treaty at INC-5 is modelled on the fund operating under which international agreement?
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Correct answer: D — Montreal Protocol
PIB (MoEFCC): the model proposed by India has been in operation under the Montreal Protocol on Substances that Deplete the Ozone Layer.
Consider the following statements about India's multilateral fund proposal at INC-5: 1. The fund would provide loan-based finance to developing countries. 2. It proposes a subsidiary body with equal representation of developed and developing countries. Which of the statements given above is/are correct?
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Correct answer: B — 2 only
PIB (MoEFCC): the proposed fund would provide grant-based (not loan-based) finance — 1 is wrong. It provides for a subsidiary body with equal representation of developed and developing countries — 2 is correct.