COP29: What Is NCQG? New Global Climate Finance Goal After $100 Bn Pledge Fell Short

At COP29, negotiations are underway to establish the New Collective Quantified Goal (NCQG) in climate finance, aiming to succeed the unmet $100 billion annual target.

With developing countries calling for at least $1 trillion per year, the NCQG negotiations will be crucial in determining how global climate finance is mobilised.

Source : cop29.az

NCQG At COP29: At COP29 in Baku, climate negotiators from across the world are focused on establishing the New Collective Quantified Goal (NCQG) in climate finance — a crucial next step in climate funding that will impact developing nations’ ability to address and adapt to climate change. The NCQG will supersede the previous $100 billion annual target, a goal set in 2009 but consistently unmet until recently. 

Here's what NCQG is and why it’s crucial for climate action.

Legacy Of The $100 Billion Goal Set In 2009   

In 2009, at COP15, developed nations pledged $100 billion annually to support developing countries’ climate action. However, this goal was only met in 2022, a delay that has fostered distrust between developed and developing nations. The NCQG, set to be finalised by 2025, aims to address both the historical shortfall and the growing climate finance needs of developing countries.

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Why Is NCQG Important?  

The NCQG’s primary aim is to mobilise sufficient funds to support developing countries' climate plans (NDCs), with a focus on the energy transition, adaptation, and resilience. Negotiators are discussing a target that could reach trillions by 2030 to cover these needs. However, key questions remain over the structure of the NCQG, including who will contribute, how funds will be raised, and how they will be allocated.

With developing countries calling for at least $1 trillion per year, the NCQG negotiations will be crucial in determining how global climate finance is mobilised. 

NCQG: Major Points Of Contention  

Several areas remain unresolved in NCQG negotiations:

• Contributor Base: Whether major developing economies like China should contribute remains a divisive issue.
• Sources Of Finance: Potential financing options, including taxes on fossil fuels, are under discussion.
• Type And Quality Of Finance: Developing nations seek more grants and concessional loans, as opposed to debt-driven loans.
• Transparency: Establishing tracking mechanisms is essential for accountability.