The New Collective Quantified Goal (NCQG) is a new global climate finance goal that will be set by the end of this year and is a key marker of success at COP29 in Azerbaijan.
In 2009, at COP15 in Copenhagen, developed countries committed to a goal of mobilising USD 100 billion per year by 2020 for climate action in developing countries. At COP21 in Paris, countries agreed to set a new collective quantified goal before 2025, which would be at a minimum USD 100 billion per year, taking into account the needs and priorities of developing countries.
Despite three years of discussions, negotiators are yet to achieve concrete results about the finance goal which is crucial to support developing countries in meeting their climate mitigation and adaptation targets.
India has been of the opinion that developed countries need to provide at least $1 trillion of climate finance per year.
Aarti Khosla, director, Climate Trends likened the amount of climate finance from developed countries as drops of water in a leaking bucket. “Countries who need debt-free finance spend more on repayment of debt than on funding their own health and education. Developed countries have pivoted the discussion to expanding the contributors for climate finance, mainly targeting China to pay up, as it assumes status akin to developed countries and an outsized role in global order”.
Khosla was speaking at a webinar to discuss climate finance.
Aaron Cosbey, Senior Associate, the International Institute for Sustainable Development said: “The EU's CBAM aims to prevent carbon leakage by pricing emissions, setting a precedent for G7 nations. As trade-related climate measures rise - covering industries responsible for 45% of global emissions - cooperation is vital. Without it, domestic policies risk burdening producers and hindering developing countries' aspirations.”
CBAM stands for Carbon Border Agreement Mechanism. This is a trade policy tool that aims to reduce climate change by putting a price on the carbon emissions produced during the manufacture of imported goods.
