New climate finance goal: Technical dialogue commences in Azerbaijan, heated debates expected

Sub: Env

Sec: Int conventions

Climate Finance Talks in Baku: Shaping the Future of Global Climate Funding:

From September 9-12, 2024, parties to the United Nations Framework Convention on Climate Change (UNFCCC) are meeting in Baku, Azerbaijan, to discuss a critical issue: the New Collective Quantified Goal (NCQG) on climate finance.
This goal will succeed the $100 billion per year commitment from developed to developing countries.
These sessions will build on discussions held at the mid-year climate conference in Bonn, Germany, in June 2024.
Key Challenges: One of the most contentious issues is the expansion of the contributor base.

Technical Discussions: Defining the Goal:

The technical talks are focused on various aspects of the NCQG, including:

The total amount of climate finance.
How contributions should be calculated (e.g., as absolute amounts or as a percentage of gross national income).
Whether the list of contributors should expand.
Timelines for distributing the funds.

New Collective Quantified Goal (NCQG):

Purpose and Background: The NCQG is intended to set a new global climate finance target for developed countries to support developing nations in their climate action efforts. It’s meant to succeed and expand upon the previous goal of mobilizing $100 billion annually by 2020, which was established at the 2009 Copenhagen Climate Conference.
Key Features:

Quantified Goal: The NCQG aims to establish a specific, measurable target for climate finance.
Collective Effort: It represents a joint commitment from developed countries, rather than individual national pledges.
Post-2025 Framework: The NCQG is set to come into effect after 2025, building on the previous $100 billion goal.
Comprehensive Scope: It’s expected to cover various aspects of climate finance, including mitigation, adaptation, and addressing loss and damage.

Negotiation Process: The NCQG is being discussed and negotiated through a series of technical expert dialogues and high-level ministerial meetings under the UNFCCC (United Nations Framework Convention on Climate Change) process.
Challenges: Determining the NCQG involves complex negotiations around the scale of funding needed, sources of finance, and mechanisms for delivery and transparency.
Importance: The NCQG is crucial for supporting developing countries in their climate action efforts and is seen as a key element in maintaining trust and cooperation in global climate negotiations.

COP29 of UNFCCC:

Date: Scheduled for November 11-24, 2024
Location: Baku, Azerbaijan
It follows COP28 held in Dubai, UAE, in 2023, which saw significant discussions on the phase-out of fossil fuels and the operationalization of the loss and damage fund.

Key Focus Areas of COP29:

Climate Finance:
- Discussions on the New Collective Quantified Goal (NCQG) for climate finance
- Review of progress on the $100 billion annual climate finance goal
Global Stocktake:
- Follow-up on the outcomes of the first Global Stocktake concluded at COP28
- Discussions on enhancing climate action based on these findings
Mitigation:
- Further negotiations on reducing greenhouse gas emissions
- Assessing progress on nationally determined contributions (NDCs)
Adaptation:
- Strengthening resilience and adaptive capacity in vulnerable countries
Loss and Damage:
- Operationalization of the loss and damage fund established at COP27
Implementation of Paris Agreement:
- Continued work on implementing various aspects of the Paris Agreement

Source: DTE