New Collective Quantified Goal as a Future Financing Solution

The Bonn Climate Change Conference, a key platform for finance discussions, has adopted the New Collective Quantified Goal (NCQG) as a significant climate finance initiative. Financing climate efforts has been challenging, as demonstrated by the failure to deliver the previous commitment of USD 100 billion per year pledged by developed nations in 2009.

The New Collective Quantified Goal is a new annual financial target for developed countries, starting from 2025, to ensure adequate climate finance for developing nations. This goal, set by the Conference of the Parties to the Paris Agreement (CMA), starts at a minimum of USD 100 billion per year.

According to Simon Stiell, Executive Secretary of the UNFCCC, finance is the “great enabler” of climate action and is crucial for progress towards the NCQG. He emphasized that new nationally determined contributions (NDCs) must close the implementation gap and align with the 1.5°C goal.

The NCQG is seen as a way forward after previous pledges were not met. This comes amidst ongoing questions about the operationalization of the Loss and Damage Fund after numerous pledges during COP28 in Dubai.

The Bonn Climate Change Conference aims to address financing challenges to enhance resilience in a world increasingly affected by climate change, including severe floods, heat waves, and cyclones. The conference intends to pave the way for COP29 to focus on the interdependence of climate action and sustainable development towards a climate-resilient and equitable world.

“I urge the delegates to think of the work ahead as a feat of engineering: now that the design phase is complete, delegates must put the machinery to work fully and fairly, with every part working together coherently,” said Simon Stiell.

Financing has been a major challenge in implementing adaptation measures and responding to losses and damages faced by vulnerable communities globally. This was evident when unprecedented floods in Kenya caused deaths, loss of livelihoods, and devastating destruction of infrastructure.

During the opening of the Bonn Climate Change Conference, Uganda, representing G-77/CHINA, welcomed pledges to the new loss and damage fund and stressed that all COP28 outcomes must be implemented to meet the urgent need for action.

Priorities include adopting an ambitious NCQG, operationalizing the Global Stocktake (GST) outcomes, and scaling up support for mitigation, adaptation, and loss and damage.

Simon Stiell emphasized that NDCs are not just about reducing emissions but can serve as powerful blueprints to propel economies and societies forward, driving more resilience, opportunity, better human health, and higher living standards.

Benefits of Proper Implementation of NCQG

The NCQG aims to empower developing countries facing severe climate impacts despite their minimal contribution to greenhouse gas emissions. This financial support will help them invest in clean energy, adaptation measures, and climate-resilient infrastructure.

Adopting the NCQG is expected to increase eligible climate actions related to adaptation and mitigation. This proactive approach aligns with the Paris Agreement’s goals and aims to reduce the adverse effects of climate change.

Addressing financing through the NCQG can promote and support a just transition to a low-carbon, climate-resilient economy that is sustainable and equitable, creating new green job opportunities and securing vulnerable communities.

The NCQG necessitates collaboration between developed and developing countries, fostering global cooperation to advance effective climate action and response.