Context: Recently COP 29 was concluded at Baku, Azerbaijan which focused on advancing the New Collective Quantified Goals (NCQG) for climate finance.
Relevance of the Topic: Prelims- New Collective Quantified Goals (NCQG)
The Climate Emergency:
- The Intergovernmental Panel on Climate Change (IPCC) has highlighted the need for significantly stronger commitments to limit global warming to 1.5°C above pre-industrial levels. Current policies, if continued globally, are expected to lead to a temperature rise of up to 3.1°C.
- Finance is a critical component in accelerating the adoption of cleaner alternatives, especially in developing countries.
- As part of its commitment to global climate goals, India has launched a range of green energy schemes aimed at expanding renewable energy infrastructure, promoting energy efficiency and clean fuel and technology innovations.
What are New Collective Quantified Goals (NCQG)?
- Historical background:
- At Cancun in 2010, developed countries had pledged to provide $100 billion annually to support climate action in developing countries up to 2020.
- At COP 21 in Paris, 2015, the parties decided to establish a new climate finance framework (NCQG) before 2025, with the Cancun commitment as the base point.
- Evolution of NCQG:
- NCQG was intended to create a framework for shared climate goals, to establish clear and quantified objectives that nations could aim to achieve, with transparency and accountability at the forefront.
- At COP 26 at Glasgow in 2021, an ad hoc work programme for NCQG discussions was established, scheduling discussions through 2022–2024, culminating at COP 29.
- Outcome at COP 29:
- The Standing Committee on Finance under the UNFCCC estimated that between $5 trillion to $7 trillion would be needed by 2030 to meet half the needs of 98 countries.
- Developing countries put forward a conservative ask of $1.3 trillion annually at COP 29.
- However, the developed countries committed mere $300 billion annually, till 2035.
- Further, the mobilisation of funds is expected through all sources of finance including private capital. But developing countries laid down the stress on public finance.
Know more about NCQG:
- At the 2009 CoP, the commitment of ‘$100 billion per year till 2020’ to developing nations from developed countries was set.
- Therefore, under Article 9, the 2015 Paris Climate Agreement agreed to set a New Collective Quantified Goal (NCGQ) for climate financing before 2025.
- The deliberations were aimed at strengthening the global response to the threat of climate change in the context of sustainable development and efforts to eradicate poverty, including by making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development.
- The NCQG work programme runs from 2022–24 and includes four technical expert dialogues (TEDs) each year and a High-level Ministerial Dialogue.
- The NCGQ is termed as the “most important climate goal” because,
- It pulls up the ceiling on commitment from developed countries.
- It is supposed to anchor the evolving needs and priorities of developing countries based on scientific evidence and
- It should respond “to the ever-increasing sums of funding, necessary for Loss and Damage in response to failed and/or delayed financial support.
Why do we need a new financial goal?
- The finance provided by developed countries may be inflated and misleading.
- The $100 billion target set in 2009 was seen more as a political goal since there was no effort to clarify the definition or source of ‘climate finance’.
- The economic growth of developed countries has come at the cost of high carbon emissions, and thus they are obligated to shoulder greater responsibility.
- Funds available for climate finance have increased quantitatively, but they are inaccessible, privately sourced, delayed, and not reaching countries in need.