EXPLAINER: What is the NCQG and why does it matter?
The success or failure of COP29 depends on the outcome on the New Collective Quantified Goal (NCQG). This COP will be measured mainly based on what is agreed on this item.
But what is the NCQG?
First, it stands for the New Collective Quantified Goal. It is a new global climate finance goal that negotiators are expected to agree on at COP29 in Baku, Azerbaijan.
Secondly, the NCQG forms the financial bedrock on which the world’s plan to manage climate change will be based going forward. This explains why COP29 has been described as the ‘‘finance COP’’.
Specifically, it aims to set a new financial target for supporting developing countries in their climate actions. It will define the scale of financial resources that developed countries need to mobilize post-2025.
The goal is also expected to reflect the evolving needs and priorities of developing countries in the context of the escalating impacts of climate change.
What is the history?
At the Copenhagen Climate Summit (COP15) in 2009, developed countries committed to mobilising $100 billion per year by 2020 to address the climate needs of developing countries. The pledge was, however, unmet.
The NCQG will succeed this previous $100 billion goal. Deliberations have been ongoing on setting the new goal to strengthen the global response to the threat of climate change in the context of sustainable development.
It also aims to strengthen efforts to eradicate poverty, including by making finance flows consistent with a pathway towards low greenhouse gas emissions and climate-resilient development.
What is the context?
The NCQG is premised on historical climate responsibility nations of the Global North that industrialised and benefited from the fossil fuel-based, colonial and extractive growth model and economic and financial system. This model is the origin of human-induced climate change and the related losses and damage.
What are the demands?
Global South countries have been demanding support from Global North countries to initiate climate action. The NCQG attempts to respond to these needs and priorities of developing countries by facilitating:
More climate finance to carry out adaptation action, address the losses and damages brought about by climate change
Debt relief
Fair conditions for trade
A stop to resource exploitation by their Global North counterparts
More decision-making power in global decision-making processes and
Low-carbon and sustainable development
What will the NCQG do?
Accelerate implementation of the Paris Agreement. The NCQG is expected to guide efforts to raise finance. Collectively called the Means of Implementation (MoI), finance, technology transfer and capacity building are essential to climate action.
Justice. The NCQG will also help to realise justice for Global South countries. The Global North is primarily responsible for historical emissions and, therefore, are obligated pay so that climate-vulnerable countries can initiate climate action and adaptation interventions.
Ensure consistent Finance Flows. The model recognises wealthy nations’ duty to reform the existing unjust financial system and economic model in the world and to provide support to developing nations by considering their needs and priorities.
Facilitate a Just and Equitable Transition. With resources available, countries will be able to pursue a low-carbon future through sustainable development.
Ambition and Progress. Finance is at the heart of climate action. Availability of resources motivates countries, especially in the Global South, to set ambitious climate plans (NAPs and NDCs) ahead of 2025 and aim to implement the transition from fossil fuel agreed on in Dubai. Lack of financing limits and delays this ambition.
Promote Accountability & Transparency
The NCQG has the potential to improve accountability and transparency in climate finance globally. It will enable the international community to track and evaluate financial flows better. It will do so by establishing clear parameters and reporting mechanisms for climate finance.