New Collective Quantified Goal (NCQG) on Climate Finance

December 7, 2023

Negotiations are currently taking place at the 28th Conference of Parties (COP28) to the United Nations Framework Convention on Climate Change (UNFCCC) in Dubai regarding the New Collective Quantified Goal (NCQG) on climate finance.

Informal Consultations and Draft Text Review

Informal consultations, facilitated by chairs, involve country negotiators dissecting different versions of a draft text on NCQG prepared by co-chairs. This draft summarizes the progress on the climate finance goal and suggestions for the future over the past two years.

Two Key Discussion Themes

Discussions revolve around two main themes: procedural details for the modality of NCQG work in the coming year and substantive elements, including timeframe, transparency, inclusivity, and scope.

Party-Driven Negotiations

Developing and developed countries are leaning towards changing the work program from technical to Party-driven negotiations in the coming year. This recommendation arises from the observation that discussions on the new climate finance goal have mainly been technical dialogues so far.

Concerns of Developing Countries

Representing the G77, Brazil expressed dissatisfaction with the draft text’s time frame options, emphasizing the need for considerations related to adaptation and Loss and Damage. Developing countries stress the importance of ensuring predictable and additional financial resources, with the current text falling short of reflecting this call.

Divergence on Article 2.1 (c)

A major point of contention is Article 2.1(c) of the Paris Agreement, which focuses on aligning global finance flows with climate goals. Developing countries argue that such emphasis risks neglecting the responsibility of developed countries to provide finance, as detailed in Article 9.

Disagreements on Mode of Discussions

Some developed countries propose continuing discussions through ‘inf-infs’ (informal settings), while others, like Egypt, express reservations, emphasizing that this mode is suitable only as a last resort when negotiations reach an impasse.

Way Forward and Transparency

The main option for transparency arrangements is the Enhanced Transparency Framework of the Paris Agreement. China and India emphasize the need to operationalize an agreed-upon definition of climate finance. A high-level dialogue held on December 3, 2023, discussed various aspects of the NCQG.

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