The NCQG, or New Collective Quantified Goal, is a new target in climate financing currently being formulated to provide greater financial support for developing countries in addressing climate change.
The NCQG builds as the $100 billion per year climate financing promised by developed countries in 2009 has not yet been fully met. Prompting developing countries to advocate for a more ambitious target in the form of the NCQG (please click the link to read details about the factors behind the failure of this commitment).
Read: The Commitment of US$ 100 Billion per year for Green Funding has Failed!
With the increasing intensity and frequency of climate-related disasters, such as floods, droughts, and storms, developing countries are facing escalating costs for adaptation and mitigation, which require greater financial support.
The NCQG discussion process is being shaped through dialogue between developed countries, developing countries, international organizations, and other stakeholders, aimed at ensuring that climate financing can respond to global needs fairly and effectively.
However, the NCQG discussions face challenges such as political compromises, transparency, and accountability. Determining the appropriate figure for the NCQG requires compromises between developed countries, which are reluctant to make larger commitments, and developing countries that demand more support to address climate impacts. There are also calls for the NCQG mechanism to be more transparent and accountable in terms of fund distribution and donor country contributions.
According to a UNFCCC report, the ad hoc NCQG work program was established in 2021 to facilitate technical expert dialogues on the NCQG, which will take place from 2022 to 2024. The CMA, or the Parties to the Paris Agreement, will note the progress made in 2022 and 2023 and provide further guidance on the work program.
As of September 2024, eleven Technical Expert Dialogues (TED) have been held as part of the NCQG development process on climate financing. These dialogues have involved Civil Society Organizations (CSOs) as part of ongoing efforts under the ad hoc work program.
Each Presidency is mandated to hold a High Level Ministerial Dialogue (HLMD) on the NCQG, starting in 2022 and concluding in 2024, to ensure effective political engagement and open, meaningful, and robust discussions. The HLMD will draw information from reports on the technical expert dialogues and inputs from Parties and non-Party stakeholders.
So far, two High-Level Ministerial Dialogues (HLM) have been held as part of the New Collective Quantified Goal (NCQG) process regarding climate financing. The first HLMD took place in Sharm el-Sheikh, Egypt, during COP27 in November 2022, and the second HLM was held in 2023. The third and final HLMD is scheduled for 2024, where further discussions and decisions on climate financing will occur, aiming to finalize the NCQG by the end of that year. (Please click for details on reports and outcomes from the HLM and TED.)
Key points to advocate include:
- Limiting the economic impact of debt-generating instruments by increasing grants.
- Ensuring access to new and additional high-quality climate financing.
- Establishing new and additional climate financing to ensure an extra flow of climate funds.
- Democratic ownership of climate financing strategies based on the needs of developing countries. This should be responsive to the needs of various community members, including women, non-binary and gender non-conforming communities, indigenous groups, racial and ethnic minorities, and disabled communities.
- Establishing a comprehensive monitoring and reporting framework that includes bilateral, multilateral, intermediary, and private funding flows.
- Conducting periodic reviews of goals to evaluate progress and ensure they meet the evolving needs of developing countries.
Overall, the NCQG will replace previous commitments deemed insufficient, focusing on mitigation, adaptation, and climate justice for the countries most vulnerable to the impacts of climate change.
References:
UNFCCChttps://unfccc.int/NCQG
https://unfccc.int/sites/default/files/resource/UNFCCC_NCQG2023_flyer_web.pdf
https://www.eurodad.org/q_and_a_the_future_global_climate_finance_goal
https://www.eurodad.org/ncqg_2022
Writer:
Komang Audina Permana Putri
Program Officer Isu Keuangan Berkelanjutan dan Utang,
Indonesia for Global Justice