Many in the climate policy world are enjoying some summer downtime, knowing September will plunge them back into the usual diplomatic frenzy leading up to COP. But there's no rest for those working on the thorny issue of climate finance. The question of how to raise more for poorer countries is an all-consuming issue that will be centre-stage at the COP29 negotiations in Azerbaijan in November, tasked with agreeing the "New Collective Quantified Goal" (or NCQG as it's snappily known). It's a challenge that has become extremely politicised as wealthy countries met the previous $100-billion goal two years late amid accusations that too much of it came as loans. For the NCQG, rich nations don't want to start talking about higher amounts without getting more countries to cough up. They say the world has changed since the original contributors' list was defined in the 1990s and that some big emerging economies, like China and the Gulf states, have become more polluting and prosperous. So they want them to pay into the pot too. But developing countries think this is a slippery slope and could upset the underlying principle of global climate action: that those who are most responsible for global heating due to their historically high emissions should bail out those less to blame. At the mid-year Bonn talks, this difference of opinion led to an impasse in the negotiations - which the COP29 hosts must unblock if the summit is to land an NCQG as promised. Matteo Civillini reports for Climate Home News on a recent proposal from Switzerland with new criteria that could redefine the donor pool - and another from academics that would allow some countries both to give and receive. One thing is clear: it can't remain a taboo topic.
Megan Rowling’s Post
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#ClimateNews💡 Climate Home News ▶️ "Countries failed to make progress on a post-2025 climate finance goal in Bonn", that would replace the existing commitment by developed countries to mobilise USD 100 billion per year for developing countries. ▶️ "Representatives of countries on both sides expressed disappointment with the process intended to result in an agreement on a new collective quantified goal (NCQG) at COP29 in Baku in November". ▶️ "For most developing countries, the sticking point is the lack of negotiations on the size of the new goal – known as the 'quantum' in technical language". 👉 Read the full article here: https://lnkd.in/edC8-U5M #NewCollectiveQuantifiedGoal #NCQG #COP29 #Climate #FinanceGoals
Bonn talks on climate finance goal end in stalemate on numbers
https://www.climatechangenews.com
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𝐂𝐥𝐢𝐦𝐚𝐭𝐞 𝐅𝐢𝐧𝐚𝐧𝐜𝐞: 𝐇𝐨𝐰 𝐭𝐨 𝐔𝐧𝐛𝐥𝐨𝐜𝐤 𝐭𝐡𝐞 𝐍𝐂𝐐𝐆 by Jonathan Beynon Negotiations on a new climate finance goal (𝐍𝐂𝐐𝐆) are stuck. There has been little progress on the two biggest issues: how big should the goal be, and who should pay. This matters. COP29—the last before countries commit to new targets for cutting greenhouse gas emissions in updated Nationally Determined Contributions due to be submitted by February 2025—has long been billed “the finance COP.” Failure to agree the new collective quantified goal on climate finance (NCQG) risks weakening those targets and undermining our chances of limiting dangerous climate change. The positions of developed and developing countries remain entrenched and far apart, and a deal hangs in the balance. Developed countries have so far refused to commit any additional money beyond the existing $100bn/year goal, insisting that the world has changed since the original group of contributors—23 developed countries (the “Annex II” countries) that were members of the OECD in 1992— was first agreed. They argue that new donors should first be added to this group and emphasise the role that private finance has to play. Developing countries, meanwhile, insist that both legal and moral responsibility lies with developed countries, and that the current goal is woefully inadequate. Both sides have a point. https://lnkd.in/dYfcqbQV
Climate Finance: How to Unblock the NCQG
cgdev.org
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One of the problems is that climate Cops are not well-suited to discussions on finance. Countries send their environment ministers and teams, rather than their finance ministries. Cops have no jurisdiction over institutions such as the World Bank and the International Monetary Fund, which will be key in delivering publicly funded climate finance. Ways must be found to draw national finance ministers and international institutions more closely to the climate talks before it is too late. https://lnkd.in/deFxuZGC
Key takeaways from the Bonn climate conference
theguardian.com
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Climate finance 🤝 climate justice UNFCCC Executive Secretary Simon Stiell has called for SB60 negotiators to produce "real options for a new collective quantified goal on climate finance". With COP29 in Baku just six months away, Steill warns that "serious progress on climate finance" must be made beforehand. 💰🌏 It's clear that serious funding commitments are essential for reaching global climate targets. This is as much the case for philanthropy as it is for governments. 👀 The Climate Justice Map is a tool to help philanthropies shift more power and resources to organisations working on the frontlines of the climate crisis in the Global South.📍 Join our upcoming training session that is especially dedicated to funders, philanthropies, and advisors - designed to teach you how to utilise the Climate Justice Map in your work. 💪 📅 Monday 17th June ⏰ 5pm BST / 6pm CEST / 12pm ET 📍Online, Zoom 🔗 RSVP here: https://lnkd.in/gSwkCzGq #SB60 #Bonn #climatefinance #climatephilanthropy #climatejusticemap https://lnkd.in/ebU8H5Sp
'Make every hour count': UN climate chief calls for 'serious' progress on finance at Bonn Summit
businessgreen.com
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The upcoming #COP29, to be held in Baku, Azerbaijan, from 11 to 22 November 2024, will be crucial for climate finance. Governments will have to conclude negotiations on the so-called New Collective Quantified Goal (NCQG) on international climate finance, as set out in the 2015 Paris Agreement. What might a fair distribution of the NCQG burden entail? In light of this question, Fausto Corvino examines policies that shift the responsibility of international climate finance to the global rich, who have not only emitted disproportionately but also have the greatest financial capacity to contribute to climate action. Ashish Kothari Read it here: https://lnkd.in/gH-UQb4J
COP29 – Rethinking Climate Finance Responsibility
https://radicalecologicaldemocracy.org
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Tomorrow #COP29Baku focuses on the link between climate and peace. Through the discussions I had at COP28 last year, I realised a major challenge to speed up climate finance in fragile and conflict affected settings is how to ensure it really gets to the most vulnerable people on the ground, and how to get to scale. And discussing this with colleagues in Search for Common Ground, we realised several of the barriers faced are very similar for the peacebuilding world, yet can be overcome. ▶️ Check out some of our learnings https://lnkd.in/ecskcd8Z Now is the time for policymakers at COP to adapt the international financial architecture for climate, so funding does reach conflict-affected communities and we get that massive scale up that is urgently needed!
From Baku to the frontlines: Making climate finance work for fragile states at COP29
https://theopinionpages.com
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Ahead, of COP29, a quick overview on three sticking points of negotiating the new climate finance goal (NCQG) in the Lowy Institute Interpreter: https://lnkd.in/gncZVivh 1. The contributor base: realities, economic circumstances and green house gas emissions have changed since the establishment of the climate change convention (UNFCCC) in 1992. Developed countries want this to be reflected in the goal, potentially expanding the contributor base. 2. The quantum: developed countries have not brought forward a figure yet while some developing countries suggest an annual goal within the trillions. The new goal needs to be ambitious and a serious step up from its predecessor of 100bn annually but also has to be achievable to be meaningful. 3. The time frame: countries have diverging opinions on when the new goal should be achieved by. A goal to be reached too far in the future could potentially mean limited financial flows now and delay urgent action. Georgia Hammersley Michai Robertson Roland Rajah Alexandre Dayant Ryan Neelam
It’s the politics, stupid: Three key reasons for slow progress on the new UN climate finance goal
lowyinstitute.org
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Co-Founder and Director at HyFlux, and myMaskFit | MBA | BEng | 2024 Uplink World Economic Forum Top Innovator
💲300 billion. That’s the revised climate finance target proposed at COP29. But will it be enough? Here’s the backdrop: The summit was supposed to wrap on Friday. Instead, negotiations stretched late into the weekend as nearly 200 countries debated the world’s climate funding plan for the next decade. Why the delay? Azerbaijan’s presidency proposed $250 billion—a number that developing nations found “insultingly low.” This sparked a counterproposal: $300 billion annually by 2035. Sources say the EU, U.S., Australia, and the UK have agreed to this increase. Yet, it’s unclear if developing countries will accept or if this new target will finally secure consensus. The stakes couldn’t be higher. This isn’t just about numbers—it’s about our planet’s future. What do you think: Is $300 billion a sign of progress, or just another number falling short of what’s needed? (Share your thoughts in the comments!) P.S. These negotiations remind us how complex global collaboration can be, yet how crucial it is for creating lasting change.
Cop29 agrees $1.3tn climate finance deal but campaigners brand it a ‘betrayal’
theguardian.com
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Climate Change Resilience | Energy Transition | Adaptation Research | Transdisciplinary Research
As of November 13, 2024, the 29th United Nations Climate Change Conference (COP29) in Baku, Azerbaijan, has seen several significant developments: 1. Establishment of a Global Carbon Market Framework: Negotiators have ratified a framework for trading U.N.-backed carbon credits among countries, marking a pivotal step in global carbon markets. This agreement pertains to Article 6.4 of the Paris Agreement, enabling the assessment and utilization of carbon-credit programs, potentially unlocking substantial climate finance. (The Wall Street Journal) 2. Enhanced Climate Finance Commitments: Multilateral development banks, including the World Bank and European Investment Bank, have pledged to increase climate-related lending to $120 billion annually for developing nations. Additionally, the Asian Development Bank plans to allocate an extra $7.2 billion for climate projects, supported by the U.S. and Japan. (Reuters) 3. Ongoing Climate Finance Negotiations: Delegates are negotiating a new climate finance deal to support global climate initiatives, with the previous $100 billion annual pledge expiring this year. Key discussions focus on determining the size of the new target and identifying contributing countries. Developing nations advocate for a larger, specific amount to meet their significant climate needs, estimated at over $1 trillion per year. (Reuters) 4. Proposals for Innovative Funding Mechanisms: To meet new global funding targets, proposals include taxes on oil companies, flights, and shipping. These measures aim to assist poorer countries in addressing climate change, with estimates suggesting that carbon taxes on aviation and shipping could raise $200 billion annually by 2035. (The Times) 5. Host Nation’s Defense of Fossil Fuel Industry: Azerbaijan’s President Ilham Aliyev has defended the country’s oil and gas industry against Western criticism, asserting that Azerbaijan is the victim of a slander campaign. This stance highlights ongoing tensions between fossil fuel-dependent nations and global climate objectives. (Reuters) These developments underscore the complexities and challenges in advancing global climate action, particularly concerning finance and equitable responsibility among nations.
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In 2022, industrialized countries finally met their $100 billion annual climate finance pledge to developing nations. This milestone, though delayed, is crucial as it addresses long-standing doubts about climate funding commitments and comes as countries negotiate a new target for #COP29. Despite this progress, significantly more funding is needed to meet the Paris Agreement targets and support developing countries in combating and adapting to climate change, emphasizing the ongoing importance of substantial and equitable climate finance. https://lnkd.in/eeWqx8Bm
Climate finance pledge tops $100 billion goal, two years past deadline
axios.com
Climate policy researcher, curious human and connector of people and ideas.
4moThanks for this informative post Megan Rowling and for the reporting that Climate Home does in general. I would however encourage you and other journalists who write and speak about climate finance to get away from using the term "donors". Climate finance is not aid. It is the repayment of a debt long owed. For more on the growing climate debt see an article by Mohamad Adow of Power Shift Africa https://www.foreignaffairs.com/articles/world/2020-04-13/climate-debt The provision of climate finance to developing countries from developed countries is an obligation inscribed in the Convention and using terms like "donor" is both misleading and false. Had developed countries fulfilled their obligations then perhaps the world could have moved on but they haven't so it hasn't. I wrote a blog on that last year. https://www.lossanddamagecollaboration.org/pages/you-cant-change-the-rules-in-the-middle-of-the-game-why-developed-countries-must-step-up-to-their-obligations-to-provide-finance-for-loss-and-damage In order for the NCQG to truly reflect the needs of developing countries, developed countries are going to have to stop pointing fingers and start fulfilling the commitments they made over 30 years ago.