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15-June-2024-Editorial

June 15 @ 7:00 am - 11:30 pm

NO OUTCOME IN BONN MEETING: WHY MONEY IS KEY TO CLIMATE ACTION 

The New Collective Quantified Goal (NCQG) is an emerging international climate finance target that aims to build upon and exceed the current commitment of $100 billion per year from developed countries to assist developing nations in addressing climate change. This new target seeks to reflect the growing financial needs for climate mitigation, adaptation, and resilience, particularly in developing countries. 

About NCQG 

  • Replacement for Current Commitment: The NCQG is designed to replace the existing $100 billion per year pledge made by developed countries. 
  • Ambitious Financial Target: It aims to set a more ambitious financial goal to meet the evolving challenges of climate change. 

Key Aspects of NCQG 

  • Increased Financial Commitment: The NCQG is expected to surpass the current $100 billion target, acknowledging the increased financial requirements for effective climate action. 
  • Expanded Scope:  
  • Sources of Funding: Identifying new and existing sources of climate finance. 
  • Types of Projects: Funding various climate-related projects, including those focused on mitigation, adaptation, and resilience. 
  • Financial Disbursement and Utilization: Ensuring effective mechanisms for distributing and utilizing the funds. 
  • Inclusivity and Fairness: Ensuring equitable contributions from countries based on their capabilities and responsibilities. 
  • Monitoring and Accountability: Establishing robust systems for tracking the flow and impact of climate finance, ensuring transparency and effectiveness. 

Finalization 

  • The NCQG is expected to be finalized and adopted at upcoming climate conferences, such as COP29. 

Centrality of Money in Climate Action 

Needs of Developing and Poor Countries 

  • Essential for Climate Action: Financial resources are crucial for both mitigation and adaptation efforts. 
  • Capacity Gaps: Developing and poor countries often lack the capacity and resources to fund necessary climate activities. 
  • Data Collection and Reporting: Funding is needed for activities such as collecting and reporting climate data, as mandated by the 2015 Paris Agreement. 

Obligations  

  • Rich Countries’ Responsibility: Developed countries, primarily responsible for climate change, are obligated to provide financial support to developing nations. 
  • 2009 Pledge: In 2009, developed countries pledged to mobilize $100 billion annually from 2020 onwards for climate action. 

2015 Paris Agreement 

  • Raising Contributions: The Paris Agreement mandates that developed countries periodically increase their climate finance contributions after 2025. 
  • NCQG for Post-2025 Period: The new target, known as the NCQG, is intended for the period after 2025 and is set to be finalized this year. 

Report of Organisation for Economic Cooperation and Development (OECD) 

  • Target Achievement Claim: The OECD reported that the $100 billion target was achieved for the first time in 2022. 
  • Dispute by Developing Countries: Developing nations dispute this claim, accusing developed countries of double-counting and using creative accounting methods. 

Financial Needs for Climate Action 

Implementation of Climate Commitments 

  • Trillions Required: It is widely recognized that developing countries need trillions of dollars annually for climate action. 
  • UNFCCC Assessment: A UNFCCC assessment estimated that developing countries require about $6 trillion by 2030 to implement their climate commitments. 

Adaptation Needs 

  • Annual Requirements: Developing countries need between $215 billion and $387 billion annually for adaptation. 
  • Clean Energy Transition: The global transition to clean energy demands approximately $4.3 trillion annually until 2030 and about $5 trillion annually until 2050 to achieve net-zero emissions. 

Demands by Various Countries 

  • India’s Proposal: India proposed that developed countries should commit to providing at least $1 trillion annually after 2025. 
  • Arab and African Proposals: Arab countries suggested a minimum of $1.1 trillion, while African countries demanded $1.3 trillion. 
  • Lack of Offers from Developed Countries: Developed nations have not made any public offers, merely acknowledging that the new target must exceed the current $100 billion per year. 

Debate Over Contribution 

Annexure 2 Countries of the UNFCCC 

  • Obligated Contributors: Under the UNFCCC and the Paris Agreement, only the 25 countries listed in Annexure 2, along with the European Economic Community, are obligated to provide climate finance. 

Shifting Responsibilities 

  • Expanded Contributions: Annexure 2 countries argue that many nations, now economically stronger, should also contribute. 
  • Examples: Countries like China, oil-rich Gulf states, and South Korea, which are not part of Annexure 2, are expected to contribute due to their current economic strength. 

Outcome of Bonn Summit 

  • Lack of Indicative Numbers: The Bonn talks did not provide any specific numbers to be refined before COP29 in Baku, Azerbaijan. 
  • Input Paper: The outcome was a 35-page, 428-paragraph input paper outlining various countries’ wish lists, including: 
  • Contributors: Determining which countries should provide funds to the climate finance pool. 
  • Allocation: Deciding how the funds should be utilized, including specific projects and initiatives to be funded. 
  • Monitoring: Creating systems for tracking and overseeing the flow and management of the finances. 
  • Future Negotiations: The input paper is expected to evolve into a formal negotiating draft for discussions at COP29. 

Conclusion 

The New Collective Quantified Goal (NCQG) represents a critical step forward in international climate finance, aiming to meet the growing needs of developing countries for effective climate action. As countries work towards finalizing and adopting this new target, the principles of increased financial commitment, expanded scope, inclusivity, and robust monitoring will be essential in ensuring its success. 

Details

Date:
June 15
Time:
7:00 am - 11:30 pm
Event Category:
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