UN Climate Change News, 5 July 2023 - The process of developing the new collective quantified Goal (NCQG) for climate finance reached its halfway mark last month at the Bonn Climate Conference in Bonn.
Under the Paris Agreement, governments decided to set the NCQG from a floor of USD 100 billion per year, taking into account the needs and priorities of developing countries. The process began at the beginning of 2022 and is set to conclude at the end of 2024.
“The new goal on climate finance is an opportunity to rebuild confidence in the transformational change that is required - to mobilize and deliver finance in a way that addresses the needs of developing countries,” said UN Climate Change Executive Secretary Simon Stiell.
In the lead up to 2024, an intense series of technical expert workshops (TEDs) is under way. The fifth TED held earlier this year yielded options on the time frames and structure of the NCQG.
At the most recent technical workshop, TED 6 in Bonn, the co-chairs of the ad hoc work programme on NCQG, Fiona Gilbert and Zaheer Fakir led the dialogue, focusing on two crucial elements.
One was quantity, so how to define the overall amount of the financial goal and other possible quantitative elements. The other was the mobilization and provision of financial sources, so how to determine the sources of finance for the amount to be set, which could be both from public and private sources of finance.
While there was less emphasis on specific options at TED 6, there was greater clarity on how to approach the amount of the goal and other possible quantitative elements and identification of sources. And there was an acknowledgment that the quantum (the required amount) of the NCQG should be determined based on the needs and priorities of countries.
Climate finance needs of developing countries run in the trillions
Whether the NCQG for climate finance will address all climate finance needs of developing countries, estimated to be in the range of USD trillions, or only a specific share, is yet to be clarified.
Experts also acknowledged that international public finance from developed to developing countries will play a crucial role as the core financial source for the NCQG. However, they recognized that this alone would not be sufficient to meet all the needs and priorities of developing countries. Therefore, the NCQG work programme explored additional sources of finance, including private funding. Further discussions and more clarification are needed on determining the sources of the goal.
The look ahead
Discussions on the NCQG will continue at TED 7, which is tentatively scheduled for the third quarter of 2023. This session will focus on the theme of "quality" and "transparency arrangements".
The co-chairs have issued a notification inviting Parties and non-Party stakeholders to submit views on TED 7 via the submission portal by Monday, 14 August 2023. Additionally, TED 8, set to take place in Dubai ahead of COP28 in November, will provide an opportunity to revisit elements discussed throughout the year and address outstanding questions based on intersessional work.
You can watch the recording of the technical expert dialogue here.