Climate Finance Debate: The New Collective Quantified Goal (NCQG) and COP29

• The NCQG is crucial for COP29’s success, focusing on developing countries’ needs.
• Developing countries advocate for clear, quantitative targets, including public finance, grants, and concessional loans.
• Developed countries advocate for a more inclusive approach to climate finance, prioritizing outcome-driven strategies, low emissions, and climate resilience.
• The $100 billion annual climate finance pledge, made in 2009 and extended to 2025, has been a source of distrust.
• Grants-based public finance must be the core of climate finance, supplemented by concessional loans.
• The Green Climate Fund and Global Environment Facility remain significant hurdles for developing countries.
• Discussions on expanding the contributor base for the NCQG raise concerns about equity and effectiveness of climate finance negotiations.
• Switzerland and Canada propose expanding the contributor base based on emissions and GNI per capita.
• The Standing Committee on Finance has updated the operational definition of climate finance, aiming to reduce emissions, enhance greenhouse gas sinks, reduce vulnerability, increase adaptive capacity, and increase resilience.