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Global Climate Change and Its Impacts

spread of these diseases, posing serious threats to public health. Furthermore, developing
countries’ early warning systems remain inadequate. When facing extreme climate events
like hurricanes and torrential rains, they cannot issue timely and accurate warnings to the
public, preventing people from taking prompt countermeasures and increasing risks to lives
and property.
The lack of capital and technology has further exacerbated the challenges faced by de-
veloping countries in addressing climate change. From a financial perspective, developing
countries’ limited fiscal capacity makes it difficult to bear the enormous funds required for
large-scale emission reduction and climate adaptation projects. In terms of emission reduc-
tion, initiatives such as investing in new energy projects and implementing energy-saving
transformations in traditional industries all demand substantial financial support, yet devel-
oping countries lack sufficient capital investment. For climate adaptation, improving infra-
structure and enhancing public service capabilities similarly require massive funding. How-
ever, international aid funds are limited and unevenly distributed, creating enormous gaps in
meeting developing nations’ climate response financing needs. Technologically, developing
countries lack the capacity for independent research and development of advanced climate
technologies. Whether in renewable energy development technologies, energy-saving and
emission reduction technologies, or climate-adaptive engineering technologies, they rely on
imports from developed countries. Yet the technology transfer process faces multiple obsta-
cles - including high technology transfer costs and intellectual property protection restric-
tions - making it difficult for developing countries to obtain needed advanced technologies
and effectively enhance their climate response capabilities.

II. Policy Instrument Choices for Developing Countries in Addressing
Climate Change

(1) Subsidy Policies
Subsidy policies hold a crucial position in developing countries’ climate response strat-
egies, particularly demonstrating positive effects in key areas such as promoting renewable
energy development and facilitating widespread adoption of energy-saving technologies.
Taking India as an example, to substantially increase the proportion of renewable energy in
its energy mix, the Indian government implemented investment subsidy policies for solar
power projects. By directly providing financial support to relevant enterprises, the gov-
ernment significantly reduced the substantial initial investment costs faced by solar power
companies. This initiative greatly stimulated market vitality, attracting numerous enterprises
to enter the solar power sector. In regions with abundant solar resources such as Rajasthan,
large numbers of solar power stations have sprung up like mushrooms. These solar facilities
not only fully utilize local solar resources but also drive rapid growth in India’s installed so-
lar capacity, optimizing the country’s energy structure to some extent, reducing reliance on
traditional fossil fuels, and consequently lowering greenhouse gas emissions.

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