Approach:

Introduction: Introduce the New Collective Quantified Goal (NCQG) on climate finance and its purpose

Body: Explain the guiding principles of the NCQG. Discuss how climate finance efforts will contribute to achieving the long-term goals of the Paris Agreement, such as limiting global warming, enhancing adaptive capacity, etc.

Conclusion: Conclude with a balanced approach towards climate finance.

Answer:

The New Collective Quantified Goal (NCGQ) is a key issue in global climate financing that aims to set a new target for the amount of money that developed countries will need to provide to developing countries to help them cope with the impacts of climate change and reduce their greenhouse gas emissions. The developed countries have not achieved the current target of $100 billion per year, which was agreed upon in the Paris Agreement. The NCQG was one of the main topics discussed at the Bonn climate conference in June 2023, which served as a preparatory meeting for the upcoming COP28 in Dubai.

The NCGQ will address the gaps and challenges in mobilising climate finance by following the guiding principles:

1. The NCQG must be based on the best-available climate science and data. The previous USD 100 billion targets lacked clear definitions, allocations, and sub-goals, making them a political statement without a strong basis. The new goal should avoid such mistakes and be developed within the UNFCCC and the Paris Agreement, anchored on climate justice.
2. The NCQG must be grounded in the principles of climate justice. It should consider the principles of "polluter pays," common but differentiated responsibilities, and intergenerational justice. The needs and priorities of developing countries, vulnerable sectors, and communities should be included, with a focus on gender, youth, indigenous peoples, and other highly vulnerable sectors. National climate policies and plans, such as NDCs and NAPs, should form the basis for the goal.
3. The NCQG must be regularly updated to reflect the changing needs of developing countries. The NCQG should be regularly updated, considering evolving risks, vulnerabilities, and development goals. The dynamic nature of climate finance and its interlinkages with impacts, solutions, and stakeholders should be taken into account for subsequent updates to the financial goals.

The NCQG has the potential to strengthen existing climate finance efforts, such as Green Climate Fund (GCF), Adaptation Fund, Clean Technology Fund (CTF) and Clean Technology Centre and Network (CTCN), in several ways: by increasing the amount of climate finance available, improving the quality of climate finance, and increasing the transparency of climate finance.

Strengthening climate finance efforts can contribute to achieving the long-term goals of the Paris Agreement, which are to limit the global average temperature rise to well below 2°C above pre-industrial levels and pursue efforts to limit it to 1.5°C, and to enhance the ability of countries to cope with the adverse effects of climate change:

1. Help developing countries reduce their greenhouse gas emissions by investing in low-carbon technologies and practises, such as renewable energy, energy efficiency, sustainable transport, and forest conservation.
   1. The GCF has supported projects such as the installation of solar mini-grids in Mali, the promotion of electric buses in Colombia, and the restoration of peatlands in Indonesia.
2. Adapt to the changing climate by enhancing resilience and reducing vulnerability to climate risks, such as droughts, floods, heat waves, and sea level rise.
   1. The Adaptation Fund supported projects such as the construction of rainwater harvesting systems in Rwanda, the improvement of early warning systems in Samoa, and the protection of coastal ecosystems in Mexico.
3. Foster innovation and learning by supporting the development and deployment of new technologies and solutions that can address the challenges and opportunities posed by climate change.
   1. The Climate Technology Centre and Network (CTCN), which provides technical assistance and capacity building on climate technologies to developing countries, has supported projects such as the development of a climate-smart agriculture platform in Kenya, the implementation of a waste-to-energy system in Nepal, and the introduction of a green cooling initiative in Ghana.
4. Leverage additional resources and catalyse transformational change by mobilising public and private sector actors to invest in climate action.
   1. The Climate Investment Funds have leveraged over $60 billion from other sources of finance, such as multilateral development banks, bilateral donors, and private investors.
5. Enhance cooperation and solidarity among countries by facilitating the exchange of knowledge, experience, and best practices on climate action.
   1. GEF has supported a project that aims to improve the management of transboundary water resources in Central Asia, a project that seeks to promote sustainable land management in the Sahel region of Africa and a project that aims to conserve biodiversity in the Coral Triangle of Southeast Asia.
6. Promote equity and justice by ensuring that the needs and priorities of the most vulnerable and marginalised groups are taken into account in climate action.
   1. The Least Developed Countries Fund (LDCF) has supported a project that empowers women farmers in Ethiopia to cope with droughts, a project that engages youth in climate-resilient livelihoods in Cambodia, and a project that strengthens the resilience of indigenous communities in Bolivia.

Climate finance should prioritise projects and programmes that effectively reduce emissions and address climate change impacts. The NCQG should engage stakeholders capable of mobilising public and private finance to explore new funding sources like blended financing, green bonds and public-private partnerships. Furthermore, transparency, accountability and monitoring of projects are crucial to ensure the effectiveness of global climate finance efforts.