Mains Marathon

Approach :

• Briefly introduce the New Collective Quantified Goal on Climate Finance (NCQG).
• Mention the key Features of NCQG.
• Highlight its significance and limitations in addressing the needs of developing countries.
• Conclude with a suitable way forward.

Introduction:

The New Collective Quantified Goal (NCQG) on climate finance, adopted at COP29 in Baku (2024), aims to replace the earlier $100 billion annual commitment made at COP15 (Copenhagen, 2009), which was never fully achieved. Intended to mobilize increased and predictable finance for developing nations post-2025, the NCQG reflects both progress and persisting gaps in global climate finance.

Body :

Key Features of NCQG:

• Sets a target of $300 billion per year by 2035 in public climate finance from developed countries.
• Broader ambition to mobilize $1.3 trillion annually, including private and other financial flows.
• Incorporates a mid-term review in 2030 linked to the Global Stocktake.
• Emphasizes improved access, with proposed tracking of application-to-disbursement timelines.
• Acknowledges the importance of loss and damage, adaptation, and grant-based finance.
• Opens room for “voluntary” contributions from emerging economies, diluting historical responsibility.

Significant Developments:

• Quantum increase from the previous $100 billion goal is welcome.
• Explicit mention of access and monitoring mechanisms is a first.
• Inclusion of loss and damage finance reflects broader thematic consideration.

Major Limitations:

• Inadequate scale: India alone needs $170 billion annually till 2030; the collective need of developing countries exceeds $1 trillion/year.
• Equity dilution: Encouraging contributions from all countries undermines Common But Differentiated Responsibilities (CBDR).
• Lack of legal binding: No enforceable obligation for developed countries to meet targets.
• Opaque definitions: No clarity on what constitutes “climate finance” or how flows will be reported and verified.

Conclusion :

While the NCQG marks a step forward in ambition, scale, and institutional scope, it still falls short of fully addressing the differentiated needs of developing countries like India. To be truly effective, the NCQG must ensure adequacy, equity, predictability, and transparency in both mobilisation and disbursement of climate finance.