New Collective Quantified Goal (NCQG) and Running on Empty Report

New Collective Quantified Goal (NCQG) and Running on Empty Report

  • Context: 

  • A recent UN analysis, titled Running on Empty, was released ahead of the 30th UN Framework Convention on Climate Change Conference of Parties (COP-30) in Belem, Brazil.  

  • Key Findings of the 'Running on Empty' Report 

  • Developing countries will require $310-$365 billion annually by 2035 to adapt to climate change. 

  • In 2023, international public adaptation finance flows to developing countries stood at only $26 billion (a decrease from $28 billion the previous year) 

  • The Funding Gap:  

  • The required adaptation funds are nearly 12 times more than the money currently flowing from the developed to the developing world for this purpose.  

  • The report highlights that a target agreed upon at COP-26 (Glasgow) to double adaptation finance to $40 billion by 2025 will be “missed” if current trends continue 

  • The report expresses concern that finance is primarily classified as debt.  

  • Debt instruments comprised 58% of the overall flows on average in 2022-23 (which is considered worrisome) 

  • The New Collective Quantified Goal (NCQG) 

  • At COP21 (Paris, 2015), Parties decided that a New Collective Quantified Goal (NCQG) on climate finance shall be set by 2025, “from a floor of USD 100 billion per year”, taking into account the needs and priorities of developing countries. 

  • This term collectively refers to the costs developing countries insist developed countries must pay for: 

  • Adaptation  

  • Mitigation  

  • Compensation for losses and damages already occurred 

  • It is the new climate finance goal agreed upon at COP-29 in Baku, Azerbaijan 

  • NCQG seeks to operationalize Article 9 of the Paris Agreement, while upholding equity and CBDR-RC principles 

  • The Disparity: 

  • Developing nations demanded nearly $1.3 trillion annually by 2035 

  • The developed world agreed to only $300 billion (which was set as the NCQG) 

  • Report's Criticism of NCQG:  

  • The UN report underlines the criticism of this $300 billion goal, calling it woefully inadequate.  

  • It states that the $1.3 trillion figure (part of the Baku to Belém Roadmap) is necessary to meet the growing climate risks.