Negotiators agree to discuss select elements of NCQG

Negotiators agree to discuss select elements of NCQG

Sub : Env

Sec: Int conventions

New Collective Quantified Goal for Climate Finance (NCQG):

• The New Collective Quantified Goal (NCQG) for Climate Finance is an initiative under the United Nations Framework Convention on Climate Change (UNFCCC), aiming to set a new and more ambitious target for climate finance, beyond the previous goal of mobilizing $100 billion annually.
• The NCQG is expected to address the increasing financial needs of developing countries to meet climate mitigation and adaptation goals as outlined in the Paris Agreement.

Key Aspects of the NCQG:

1. Background and Transition from $100 Billion Goal:
   • The $100 billion annual climate finance commitment, made by developed countries in 2009 (COP15 in Copenhagen), was intended to be fulfilled by However, this goal has not been fully met, leading to increased calls for a new and higher financial target.
   • The NCQG seeks to replace this outdated target with a more robust and inclusive framework, addressing the needs for mitigation, adaptation, loss and damage, and just transition.

Article 6.8 Deliberations (Non-Market Approaches – NMA):

• Article 6.8: Provides opportunities for countries to cooperate towards the achievement of their NDCs without relying on carbon markets.

Mitigation Work Programme (MWP):

• The Mitigation Work Programme (MWP) is an initiative under the UNFCCC aimed at scaling up global mitigation efforts to meet the climate targets set by the Paris Agreement.
• The MWP focuses on reducing greenhouse gas (GHG) emissions and limiting global warming to well below 2°C, with efforts to pursue a limit of 1.5°C above pre-industrial levels.
• Background:
  • The MWP was introduced during COP26 (Glasgow, 2021) as part of efforts to bridge the emissions gap and enhance collective action on mitigation.
  • It was further developed and launched at COP27 (Sharm El-Sheikh, 2022), where countries emphasized the need for urgent, transformative actions in this decade (2020-2030).
  • The programme responds to the findings of the IPCC Sixth Assessment Report, which highlighted the need for rapid, substantial reductions in GHG emissions to avoid catastrophic climate impacts.

National Adaptation Plan (NAP):

• The National Adaptation Plan (NAP) is a strategic framework established under the United Nations Framework Convention on Climate Change (UNFCCC) to help countries, particularly developing nations, adapt to the impacts of climate change.
• The NAP process enables countries to identify vulnerabilities, prioritize adaptation actions, and integrate adaptation into national planning and development strategies.
• Background:
  • The NAP process was established in 2010 as part of the Cancun Adaptation Framework at COP16 (Cancun, Mexico).
  • It aims to address medium- and long-term adaptation needs, complementing the National Adaptation Programmes of Action (NAPAs), which focused on urgent and immediate needs.
  • The process is country-driven, allowing each nation to tailor its plan based on its unique climate risks, priorities, and socio-economic conditions.

New Climate Finance Report:

• Investment Needs: Emerging market and developing countries (excluding China) require $2.3-2.5 trillion annually for climate action by 2030.
• Implications: This data could shape the ongoing negotiations on setting a new climate finance goal (NCQG).

ESCAP Event on Low Carbon Energy Transition (Asia-Pacific):

• Organisers: ESCAP, IAEA, IRENA, UNEP FI, UNCTAD.
• Low Carbon Energy Transition:
  • The Low Carbon Energy Transition refers to the global shift from fossil fuels (coal, oil, and natural gas) towards renewable and low-carbon energy sources such as solar, wind, hydropower, geothermal, and nuclear energy.
  • This transition is a key strategy for mitigating climate change by reducing greenhouse gas (GHG) emissions and achieving net-zero carbon emissions by mid-century, in line with the goals of the Paris Agreement.

Industrial Transition Accelerator (ITA):

• Call to Action: Urged governments to increase green procurement of low-carbon products in high-emission industries.
• Support Base: Endorsed by 50 business leaders and over 700 financial institutions.
• Challenges: Over 500 industrial projects need financing, amounting to over $1 trillion. Urgent policy measures were suggested to stimulate demand.
• About ITA:
  • The Industrial Transition Accelerator (ITA) is a new global initiative launched at COP28, focusing on decarbonizing heavy-emitting industries.
  • Spearheaded by the UN, UAE, and Bloomberg Philanthropies, the ITA aims to mobilize significant investments to support industrial decarbonization projects, specifically targeting sectors like steel, cement, chemicals, aluminum, aviation, and shipping.
  • The ITA has identified a pipeline of 473 projects requiring around $700 billion in investments by 2030 to produce low-carbon commodities.
  • These efforts are essential as heavy industries contribute approximately 30% of global CO₂ emissions.
  • The initiative addresses key barriers such as insufficient demand for low-carbon products, and plans to implement demand-side policies, including green public procurement and carbon pricing standards.
  • Tools like a Policy Playbook and a Green Purchase Toolkit will also be provided to assist stakeholders in creating a supportive market environment for green investments.

Just Energy Transition (JET):

• The Just Energy Transition (JET) is a framework aimed at ensuring that the shift from fossil fuels to a low-carbon economy is carried out in a fair, inclusive, and equitable manner.
• It prioritizes social justice and equity, recognizing the economic and social impacts on workers, communities, and industries heavily dependent on fossil fuels. The concept has gained prominence as countries accelerate efforts to meet climate targets under the Paris Agreement.
• Recent Developments:
  • At COP28 (Dubai, 2023), discussions on JET focused on scaling up international cooperation and financial support for developing countries.
  • New commitments were made to enhance social protection measures and support workforce retraining initiatives as part of broader climate action strategies​.
  • The International Labour Organization (ILO) has been actively promoting the JET framework, emphasizing the need for strong labor policies and rights-based approaches to ensure fair treatment of all workers.