The New Collective Quantified Goal (NCQG) on climate finance is a key element of the 2015 Paris Agreement, aimed at setting a new financial target to support developing countries in their climate actions post-2025. This goal builds on the previous commitment made at the Copenhagen Climate Summit in 2009, where developed countries pledged to mobilise $100 billion per year by 2020 to address the needs of developing countries.
The NCQG seeks to address persistent gaps in climate finance by providing a more realistic and ambitious financial framework. It aims to foster global partnerships and enhance trust and cooperation among nations which are crucial for successfully implementing the Paris Agreement. The NCQG is currently under negotiation and is expected to be finalised next year.
NCQG and COP29
The NCQG is expected to be a major focus at the 29th Conference of Parties (COP29), in Baku, Azerbaijan, in November. This is being referred to as the “finance COP” due to its emphasis on aligning climate finance contributions with global needs. Ahead of COP29, the High-Level Ministerial Dialogue on the NCQG took place in Baku on October 9, hopefully fostering deep political engagement.
Informed by the outcomes of the technical expert dialogues conducted in September, ministers’ deliberations are expected to guide the setting up of the NCQG, which aims to channel greater funds toward climate action in developing countries to support their needs and priorities, as well as low-carbon, climate-resilient solutions; scale up finance from public and private sources and address the quality and accessibility of climate finance.
The negotiations are crucial as the amount of funds dedicated to the NCQG will determine the ability of developing countries to implement their Nationally Determined Contributions (NDCs), which the UNFCCC’s Standing Committee on Finance estimates will cost around US$5.8 – US$5.9 trillion cumulatively by 2030. In the submissions to the UNFCCC, there is a diversity of opinions regarding the quantum, quality and access to climate finance for developing countries. On quantum, these amounts range from US$100 billion annually, which was previously agreed, to US$1 trillion annually.
State and non-state stakeholders have called for equity and inclusivity to address evolving needs and priorities of developing countries, in addition to enhanced access to funds and maintaining a balance between adaptation and mitigation funding.
While agreeing on the NCQG is crucial, it’s even more important for countries to access the necessary finance, which hinges on their ability to write strong, compelling proposals. In this regard, the Commonwealth Climate Finance Access Hub (CCFAH) plays an important role and has provided technical support to countries, particularly Small Island Developing States (SIDS) and other vulnerable countries across the Commonwealth, to navigate the complex landscape of climate finance.
Since its inception in 2015, CCFAH has mobilised approximately US$363.55 million of climate finance for 88 climate adaptation, mitigation and cross-cutting projects across 15 countries. Additionally, CCFAH has facilitated around 138 capacity-building initiatives, training close to 2,800 stakeholders from the government, private sector, civil society and youth. It has also supported member countries accredit national agencies for access to global climate finance. This has been achieved through deploying national and regional climate finance advisers in government ministries and regional institutions, who help these countries access resources from international and regional climate funds.
Through already established mechanisms for developing project proposals, capacity building, enhancing innovative financial instruments and providing accreditation support, CCFAH is well-placed to support countries to access the funds agreed under the NCQGs.
Influence for greater climate good
The Commonwealth Secretariat advocates the interests of member countries in international climate negotiations, ensuring that their needs and priorities are reflected in the NCQG discussions. Additionally, we have made concerted efforts to highlight the outcomes of the NCQG at COP29, notably at the SIDS4 conference, which took place in Antigua and Barbuda earlier this year, emphasising the unique challenges faced by SIDS.
To raise awareness of the increased need for access to climate finance, we are hosting a ‘Climate Breakfast’ with heads of government at the Commonwealth Heads of Government Meeting (CHOGM) in Samoa later this month, reinforcing our commitment to advancing climate action and fostering high-level dialogue on climate action.
Adopting a strong NCQG at COP29 is crucial to set the foundation to rebuild and strengthen trust in the international climate finance system. It is hoped that the NCQG will turbocharge funding for developing nations, empowering them to leap towards a greener, more resilient future, with the Commonwealth Secretariat and CCFAH here to help them do so.
Written by Commonwealth Secretariat Climate Team comprising: Dr Deepa Pullanikkatil, Commonwealth National Climate Finance Adviser, Fiji; Unnikrishnan Nair, Assistant Director Climate Change, Commonwealth Secretariat; Ankita Narain, Climate Change Research and Policy Officer, Commonwealth Secretariat; Uzoamaka Nwamarah, Adviser, Climate Change, Commonwealth Secretariat; Soumik Biswas, Commonwealth Indo-Pacific Regional Climate Finance Adviser; and Ritwika Mishra, Work Experience Intern
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