At the 29th Conference of the Parties (COP 29) in Baku, Parties are expected to agree a New Collective Quantified Goal (NCQG) for climate finance from a floor of $100 billion per year, taking into account the needs and priorities of developing countries.
A new goal for climate finance needs to mark a transformative shift in unlocking developing country ambition to ensure that the world can achieve the goals of the Paris Agreement.
To achieve this, the goal should be based on the evidenced needs of developing countries, uphold the principle of common but differentiated responsibilities and respective capabilities (CBDR-RC) and support just transition pathways.
Based on modelled projections using the United Nations Global Policy Model (UN GPM), developing countries require around $1.1 trillion for climate finance from 2025, rising to around $1.8 trillion by 2030.
Provided that key reform and coordination efforts are undertaken in global economic governance to support developing countries’ growth and development outlooks, developed countries could anticipate a funding equivalent of three quarters of the investments needed in developing countries for climate mitigation and adaptation, as well as supporting their response to loss and damage as a consequence of climate change.
Accordingly, the NCQG contribution target for developed countries would be $0.89 trillion in 2025, reaching $1.46 trillion by the fifth year of implementation.