• The UN Climate Change Conference (COP29) closed on November 24 with a new finance goal to help countries to protect their people and economies against climate disasters, and share in the vast benefits of the clean energy boom.

With a central focus on climate finance, COP29 brought together nearly 200 countries in Baku, Azerbaijan, and reached a breakthrough agreement that will:

1) Triple finance to developing countries, from the previous goal of $100 billion annually, to $300 billion annually by 2035.

ii) Secure efforts of all actors to work together to scale up finance to developing countries, from public and private sources, to the amount of $1.3 trillion per year by 2035.

• Known formally as the New Collective Quantified Goal on Climate Finance (NCQG), it was agreed after two weeks of intensive negotiations and several years of preparatory work, in a process that requires all nations to unanimously agree on every word of the agreement.

New Collective Quantified Goal (NCQG)

• The New Collective Quantified Goal (NCQG) on climate finance is a key element of the 2015 Paris Agreement, aimed at setting a new financial target to support developing countries in their climate actions post-2025. 

• This goal builds on the previous commitment made at the Copenhagen Climate Summit in 2009, where developed countries pledged to mobilise $100 billion per year by 2020 to address the needs of developing countries.

• The NCQG seeks to address persistent gaps in climate finance by providing a more realistic and ambitious financial framework. 

• It aims to foster global partnerships and enhance trust and cooperation among nations, which are crucial for successfully implementing the Paris Agreement.

Importance of NCQG

1) Empower Developing Countries

Unequal Impact of Climate Change: Developing countries bear the brunt of climate change effects like extreme weather events and rising sea levels, despite contributing minimally to global emissions.

Access to Resources: The NCQG will provide these nations with critical financial support to invest in:

i) Clean energy transitions,

ii) Adaptation measures, and

iii) Resilient infrastructure tailored to their unique vulnerabilities.

2) Accelerate Climate Action

• Climate change demands large-scale funding for both mitigation and adaptation strategies.

• Facilitating Ambitious Plans: By unlocking substantial resources, the NCQG enables countries to meet their Nationally Determined Contributions (NDCs) under the Paris Agreement, aligning their efforts with the global target of limiting warming to 1.5°C.

• It also boosts technology transfer, crucial for developing nations to adopt innovative, low-carbon solutions.

3) Promote a Just Transition

• Balancing Development and Sustainability: The NCQG ensures that economic growth in developing countries is aligned with low-carbon pathways.

• Job Creation and Community Protection: By funding renewable energy projects, green technologies, and sustainable industries, the NCQG creates opportunities for new employment while safeguarding vulnerable populations from economic displacement.

4) Boost Global Cooperation

• Climate finance is a collective responsibility, requiring developed nations to fulfill their commitments and rebuild trust with developing nations.

• Strengthening Partnerships: The NCQG fosters collaboration, ensuring that global climate action is inclusive and acknowledges the principles of equity and common but differentiated responsibilities (CBDR).

• A well-implemented NCQG could rejuvenate multilateral efforts and enhance the credibility of international climate agreements.

(The author is a trainer for Civil Services aspirants.)