NEW COLLECTIVE QUANTIFIED GOAL (NCQG)
1. Context
The recentlyconcluded Bonn climate conference in Germany, expected to outline the political agenda for the crucial endofyear Conference Of Parties28 (COP28) in Dubai, was critical for reviewing and reforming the climate finance architecture.
2. What is the NCQG?
- 2009 COP set a target of '$100 billion per year till 2020' for developed countries to provide financial support to developing nations.
- Estimates indicate that addressing climate change may cost billions or even trillions of dollars.
- The 2015 Paris Climate Agreement established a New Collective Quantified Goal (NCQG) for climate financing before 2025.
- The NCQG is considered the most important climate goal as it increases the commitment from developed countries and considers the needs and priorities of developing nations.
- It takes into account scientific evidence and aims to address the increasing funding required for Loss and Damage due to inadequate financial support.
- Climate groups emphasize the significance of the NCQG in responding to evolving needs and priorities.
3. Issues with Climate Finance and Promised Funding
- Developed countries provided $83.3 billion in 2020 out of the promised $100 billion per year for climate finance.
- However, an Oxfam analysis suggests that these figures may be inflated by as much as 225% due to misleading and shady reporting practices.
- The $100 billion target set in 2009 was considered more of a political goal, lacking a clear definition or source of 'climate finance.'
- Developed countries, benefiting from economic growth, bear a greater responsibility due to their high carbon emissions.
- Although funds for climate finance have increased, they are often privately sourced and inaccessible to countries in need.
- Countries must wait for years to access funds, leading to delayed implementation of climate projects.
- A study by the Centre for Science and Environment reveals that only about 5% of climate finance comes as grants, while the majority is in the form of loans and equity.
- This reliance on loans burdens developing countries with a debilitating debt crisis.
- Developing countries face high-interest rates when accessing climate finance, further increasing their debt burden.
- The countries most in need of finances often experience significant delays in receiving funds, hindering their climate change mitigation and adaptation efforts.
4. Concerns and Perspectives on Climate Finance
- Developed countries argue that the New Collective Quantified Goal (NCQG) should be considered a collective goal for both developed and developing nations.
- Experts express concerns that this argument may shift the burden of achieving "net zero" pathways onto developing countries.
- Developing nations may struggle to afford mitigation, adaptation, infrastructure development, and addressing loss and damage simultaneously.
- Countries emphasize the importance of mobilizing private-sector investments and loans as a critical component of climate finance.
- They believe private-sector involvement can provide additional financial resources for climate action.
- The Global Stocktake, scheduled to take place at COP28, will play a crucial role in charting the pathway for long-term climate action.
- It will assess progress, identify gaps, and guide future efforts to address climate change.
6. Key considerations for NCQG in 2023
- In 2023, countries face a tight deadline to reach an agreement on the New Collective Quantified Goal (NCQG) before 2024.
- A global transition to a low-carbon economy necessitates investments ranging from $4 trillion to $6 trillion annually, according to the Sharm el-Sheikh implementation Plan from the previous year.
- Instead of a single aggregate figure, some suggest that the NCQG could establish separate targets or sub-goals for specific areas such as mitigation, adaptation, and loss and damage.
- This approach aims to prioritize scaling up concessional financing, halting debt creation, and allowing the NCQG to be more of an ongoing process rather than a fixed goal.
- The objective is to ensure that the NCQG promotes an equitable transition and involves meaningful participation from communities.
- By emphasizing concessional financing and debt considerations, the aim is to support a transition that benefits people and addresses their specific needs.
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For Prelims: New Collective Quantified Goal (NCQG), Conference Of Parties28 (COP28), Loss and Damage fund, Climate Financing, Net Zero target, and Sharm el-Sheikh Implementation Plan.
For Mains: 1. Discuss the concept of the New Collective Quantified Goal (NCQG) in climate financing and its significance in addressing the needs of developing nations. What are the key considerations for reaching an agreement on the NCQG in 2023?
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Previous year questions
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1. With reference to the Agreement at the UNFCCC Meeting in Paris in 2015, which of the following statements is/are correct? (UPSC 2016)
1. The Agreement was signed by all the member countries of the UN and it will go into effect in 2017
2. The Agreement aims to limit greenhouse gas emissions so that the rise in average global temperature by the end of this century does not exceed 2°C or even 1.5°C above pre-industrial levels.
3. Developed countries acknowledged their historical responsibility in global warming and committed to donate $ 1000 billion a year from 2020 to help developing countries to cope with climate change.
Select the correct answer using the code given below:
A. 1 and 3 only
B. 2 only
C. 2 and 3 only
D. 1, 2 and 3
Answer: B
2. The United Nations Framework Convention on Climate Change (UNFCCC) is an international treaty drawn at (UPSC 2010)
A. United Nations Conference on the Human Environment, Stockholm, 1972
B. UN Conference on Environment and Development, Rio de Janeiro, 1992
C. World Summit on Sustainable Development, Johannesburg, 2002
D. UN Climate Change Conference Copenhagen, 2009
Answer: B
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Source: The Hindu
