The development of the new collective quantified Goal (NCQG) for climate finance reached its midway point recently during the Bonn Climate Conference held in Bonn. The process is in accordance with the Paris Agreement, where governments agreed to establish the NCQG starting from a minimum of USD 100 billion annually, taking into consideration the requirements and priorities of developing nations. The initiative began in early 2022 and scheduled to conclude by the end of 2024.
UN Climate Change Executive Secretary Simon Stiell, expressed that the new climate finance goal presents an opportunity to restore confidence in the necessary transformative changes. It aims to mobilize and provide finance in a manner that addresses the needs of developing countries.
As part of the lead-up to 2024, a series of intensive technical expert workshops (TEDs) are currently underway. The fifth TED, conducted earlier this year, produced various options regarding the timeframe and structure of the NCQG.
During the most recent technical workshop, TED 6 in Bonn, Fiona Gilbert and Zaheer Fakir, co-chairs of the ad hoc work programme on NCQG, led the discussions with a specific focus on two critical elements. The first element was quantity, involving the determination of the overall amount of the financial goal and other potential quantitative aspects. The second element was the mobilization and provision of financial resources, exploring how to identify the sources of finance for the predetermined amount, which could include both public and private sources.
While TED 6 placed less emphasis on specific options, it provided greater clarity on the approach to determine the goal’s quantity and other potential quantitative elements, as well as the identification of financing sources. It was recognized that the quantum (required amount) of the NCQG should be determined based on the needs and priorities of individual countries.
CLIMATE FINANCE NEEDS OF DEVELOPING COUNTRIES RUN IN THE TRILLIONS
The extent to which the NCQG for climate finance will address the entirety of developing countries’ climate finance needs, estimated to be in the trillions, remains to be clarified. Experts acknowledge the importance of international public finance from developed nations to developing countries as a primary financial source for the NCQG. However, they also recognize that this alone may not be adequate to fulfil all the needs and priorities of developing countries. As a result, the NCQG work programme is exploring additional sources of finance, including private funding. Further discussions and clarification are necessary to determine the specific sources that will contribute to achieving the goal.
THE LOOK AHEAD
TED 7, the seventh technical expert workshop, is expected to take place in the third quarter of 2023. This upcoming session will centreon the topics of “quality” and “transparency arrangements” regarding the NCQG.
Furthermore, TED 8 is scheduled to be held in Dubai prior to COP28, which is slated for November. TED 8 will provide an opportunity to revisit and re-examine the elements discussed throughout the year. It will address any remaining questions and concerns based on the work conducted during the intersessional period.
