New Collective Quantified Goals (NCQGs)

​

The New Collective Quantified Goals (NCQGs) refer to the updated financial targets established under the Paris Agreement to replace the earlier commitment of mobilizing $100 billion annually by developed countries for climate finance.

Background

1. Purpose:

   • To provide financial support to developing countries to address climate change, including mitigation, adaptation, loss and damage, and capacity building.

   • Reflects the needs and priorities of developing countries, as outlined in their Nationally Determined Contributions (NDCs).

2. Origin:

   • Agreed upon at COP21 (2015) under the Paris Agreement.

   • The $100 billion goal, set in 2009, was deemed insufficient to meet the escalating costs of climate action.

3. Scope:

   • The NCQGs aim to account for the diverse needs of developing countries, including Least Developed Countries (LDCs) and Small Island Developing States (SIDS).

   • Encompasses public and private finance, grants, and concessional resources.

​

Key Features of NCQG as Adopted at COP29 (2024)

1. Financial Commitment:

   • Target: $300 billion annually by 2035.

   • Replaces the previous $100 billion floor.

2. Challenges:

   • Falls short of the $1.3 trillion annual demand by developing countries by 2030.

   • Does not meet the financial needs estimated by the UNFCCC’s Standing Committee on Finance ($455-$584 billion annually).

3. No Minimum Allocations:

   • Lacks specific allocation floors for vulnerable groups like LDCs and SIDS.

4. Criticism:

   • Developing countries, including India, have rejected the NCQG in its current form, citing inadequate commitments and a lack of equity.

​

Importance of NCQGs

• Ensures that developing countries receive adequate resources to meet their climate goals.

• Provides a framework for predictable and equitable financial support.

• Aligns with the principle of Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC) under the UNFCCC.

​

Way Forward

1. Increase Financial Ambition:

   • Commit to higher targets reflecting the actual needs of developing countries.

2. Ensure Accessibility and Equity:

   • Set minimum allocation floors for vulnerable groups like LDCs and SIDS.

3. Strengthen Accountability:

   • Establish clear mechanisms to monitor and ensure timely disbursement of funds.

The NCQGs aim to redefine the global climate finance architecture but require significant enhancements to meet the demands of the developing world effectively.