Road to Baku: The New Collective Quantified Goal on Climate Finance
Climate finance plays a crucial role in climate efforts. This paper examines the evolution of the discussions on the New Collective Quantified Goal (NCQG), which will be a key determinant of the success of the 29th Conference of the Parties (COP29). Despite recent progress, current climate finance targets and mechanisms remain inadequate. This paper analyses the positions of various countries and coalitions. Developing countries stress the responsibility of developed countries, emphasizing equity in climate finance.
They seek a balance between adaptation and mitigation, driven by their specific needs. Their position includes setting quantitative targets, with a focus on public financial contributions, grants, and concessional loans. They favour specific, predictable, and measurable timeframes of either five-year (short-term) or ten-year (medium-term) periods. Developed countries advocate for broadening the contributor base to include more participants in climate action funding. They emphasize a focus on achieving low greenhouse gas emissions and fostering climate-resilient development, prioritizing outcome-based approaches. Their stance also involves exploring innovative financing methods with a flexible and adaptable timeframe. Issues such as over-reliance on market-based instruments, ambiguity on additionality, and inequitable distribution of funds hinder effective climate action.
The NCQG presents an opportunity to refine approaches towards climate finance for greater adequacy, predictability, and inclusivity, ensuring developing countries receive targeted support. As the world embarks on the road to Baku, it remains to be seen if the NCQG will meet these ambitious expectations and deliver equitable outcomes.