In New Delhi, the UN Climate Change Summit (COP29) unveiled a revised draft of the new collective quantified goal (NCQG) following rejection of the initial version by developing nations. Criticism arose as the first draft seemed to favor developed countries by not mandating them to provide grants or concessional financing, according to Arun Krishnan, a climate finance expert. India has been advocating for grants and concessional loans for the Global South, opposing the pressure from developed countries for investment-based solutions.
Developing nations are estimated to need up to $1.5 trillion annually to address specific climate issues and achieve net-zero transitions. Yet, comprehensive climate action funding could significantly surpass current estimates, with the UNFCCC Standing Committee on Finance projecting $5.8-5.9 trillion required by 2030 for 153 developing nations. This figure could still be inadequate, considering partial requirements recorded in available documents. Regionally, African nations face a demand of around $2.5 trillion, the Asia-Pacific around $3.2 trillion, and Latin American and Caribbean countries around $168 billion, as per the Asian Development Bank.
Given the immense financing needs, some experts and countries, including Switzerland, Canada, and the U.S., propose widening the contributor base to include high-emission, high-income emerging countries. The latest UNFCCC text on NCQG includes three main options with numerous sub-options, incorporating provisions and mobilization goals and a multi-layered strategy. The MDB group, including the World Bank, projects overall climate finance provision to escalate to $170 billion yearly by 2030, with 70% anticipated for low- and middle-income nations.
Arunabha Ghosh, CEO of the Council on Energy, Environment, and Water, emphasizes that the NCQG must align with developing countries’ needs, recommending a minimum of $1 trillion annually in grants and concessional finance to ensure climate funding is concessional, catalytic, convenient, and credible.
Original Story https://www.livemint.com/news/cop29-ncqg-climate-action-unfccc-un-summit-11731506050603.html
Category :
Tags:
