Ahead of the informal Ministerial Dialogue on the New Collective Quantified Goal (NCQG) taking place in New York on Friday, September 27, 2024, climate activists are urging world leaders to adopt a bold, ambitious, and equitable climate finance goal.
This new goal, they argue, must address the urgent needs of developing countries and uphold the principles of climate justice, focusing on delivering the resources necessary to help these nations mitigate and adapt to the impacts of climate change, as well as address loss and damage (L&D).
Mohamed Adow, Executive Director of Powershift Africa, said: “Climate finance is the key that can unlock a safe and prosperous planet for everyone. It can help the victims of climate breakdown adapt to the inevitable change and fund the needed transition to clean energy of the future.
“But this finance cannot be in the form of loans from rich polluting nations in the Global North which just pile more debt onto the Global South. That would be like giving a drowning man a life jacket stuffed with coins – it’s going to make them sink even faster.”
Tasneem Essop, Executive Director of CAN International, said: “The NCQG is not just a goal; it’s a moral imperative. The world is facing a climate crisis, and developing countries are bearing the brunt of the impacts. It’s time for developed countries to face their responsibilities and deliver on their promises and obligations to provide the necessary climate finance. We all know the resources exist, but the political will still remains shamefully absent.
“It’s time to make polluters and the wealthy pay for the harm they have caused. In these last precious weeks before COP29, we need to see developed nations let go of their colonial past, and stop dragging their feet in crucial negotiations. The NCQG is our chance to create a just and equitable future for all.”
In response to COP29 President Mukhtar Babayev’s guiding questions for the dialogue, CAN International provided the following key recommendations:
Vision and Scope of the NCQG
CAN envisions the NCQG as a transformative tool for delivering substantial climate finance from developed countries to developing countries. Given the failure to meet the existing $100 billion goal, the new framework must prioritise clear guidelines on burden sharing, additionality of climate finance, and grant equivalence to ensure effective delivery. The NCQG must define what counts (and what does not count) as climate finance, establishing transparency and accountability. Also, it is important that the new goal does not repeat the same mistakes, such as delivering climate finance mostly in the form of (non-concessional) loans and favoring mitigation at the expense of adaptation.
Ambition and Quantum of Climate Finance
The new goal must prioritise public finance, measured in grant-equivalent terms, as the most important component. Amid a global debt crisis, transparent, grant-based financing is essential to restore trust and reduce the overreliance on loans. CAN calls for a minimum public finance provision target of $1 trillion per year from developed to developing countries, covering mitigation, adaptation, and loss and damage as part of a fair down payment on their growing climate debt.
The NCQG should also include thematic subgoals to address mitigation, adaptation, and loss and damage, ensuring that all aspects of climate action are adequately financed. Loss and damage, in particular, should be central to the new climate finance regime, acknowledging the immediate needs of developing countries facing the harshest climate impacts.
Operationalising Contributions and Priorities
The NCQG must incorporate the polluter pays principle and tax justice, ensuring that those most responsible for climate change — including wealthy individuals, high-emission industries such as fossil fuels, and the military — bear the financial costs. CAN proposes that developed countries lead by implementing progressive taxes, such as wealth taxes and levies on polluters, while redirecting public subsidies away from harmful activities.
Developed nations, in line with their obligations under the UNFCCC and the Paris Agreement, must commit to providing financial support to developing countries. While developed countries carry the primary legal obligation, others with the capacity should make voluntary contributions. Post-COP29 processes will further refine expectations for contributions based on the principle of equity and common but differentiated responsibilities.
The NCQG is regarded as a crucial mechanism for delivering on the promises of the Paris Agreement and ensuring a just and equitable transition to a low-carbon future.
CAN International calls on all parties to engage constructively in the Ministerial Dialogue and commit to ambitious, meaningful action on climate finance.
