Climate Change Negotiations – UNFCCC, COP, Other Conventions and Protocols

What is the New Collective Quantitative Goal?


From UPSC perspective, the following things are important :

Prelims level: Climate Change; New Collective Quantitative Goal; Evolutions in Global Climate Finances;

Mains level: NA

Why in the News?

At the upcoming COP29 in Baku in November this year, Azerbaijan, the primary discussion will center on the New Collective Quantitative Goal (NCQG) for climate finance.

Recent Climate Conferences and Decisions:

  • 2022 Sharm el-Sheikh Conference: A Loss and Damage Fund was established to assist developing countries in recovering from climate disasters.
  • Dubai Conference: The focus was on the Global Stocktake (GST) of climate actions, acknowledging the need to transition away from fossil fuels and tripling global renewable energy capacity by 2030.

What is the New Collective Quantitative Goal (NCQG)?

      • All the parties of the Paris Agreement participate and review the implementation of the Agreement and make decisions. CMA is held once a year.
  • This goal will start with a target of at least $100 billion per year, focusing on the requirements and priorities of developing countries.
  • It will replace the previous commitment of USD 100 billion per year that developed nations had pledged in 2009 but never delivered.

NCQG: A timeline

  • In 2009: The developed countries agreed to provide approximately $30 billion in ‘new and additional’ financial resources to developing countries from 2010 to 2012.
      • Additionally, these countries committed to collectively raising $100 billion annually by 2020 to support climate action in developing countries.
  • In 2015: It was decided to continue this collective goal of mobilizing $100 billion yearly by developed countries up to 2025.
  • A new climate finance target is to be set before 2025, maintaining at least $100 billion per year and considering the needs and priorities of developing countries. This is referred to as the NCQG or the new goal for post-2025.

Financial Requirements for Effective Climate Action:

  • Current Funding Gaps: The scale of annual climate finance has consistently fallen short of the $100 billion promised by developed countries.
  • Projected Needs: Developing countries require about $6 trillion annually until 2030 to implement their climate action plans, according to a 2021 UN Climate Change report. An updated version of this report is expected to raise this figure even higher.
  • Global Transition Costs: A global transition to a low-carbon economy is estimated to require about $4-6 trillion every year until 2050.
  • Renewable Energy Expansion: Tripling renewable energy capacity, as agreed in Dubai, is estimated to cost $30 trillion until 2030, per the International Renewable Energy Association (IRENA).

Prospects for Meeting Financial Targets:

  • Realistic Expectations: Discussions are ongoing, with India suggesting a target of at least $1 trillion per year, primarily through grants and concessional finance.
  • Challenges: Developed countries have historically fallen short of even lesser goals, and achieving trillions in finance is seen as ambitious.

Back2Basics: Global Initiatives for Financing Climate Action

Established Purpose How it Works
Green Climate Fund (GCF) 2010 To support developing countries in adaptation and mitigation to counter climate change. Mobilizes funding from developed to developing countries to reduce greenhouse gas emissions and enhance climate resilience. Operates under the UNFCCC financial mechanism.
Global Environment Facility (GEF) 1991 To tackle global environmental issues while supporting national sustainable development. Provides grants for projects related to environmental conventions (biodiversity, climate change, international waters, land degradation, ozone layer, organic pollutants). Functions as a financial mechanism for multiple conventions including the UNFCCC.
Climate Investment Funds (CIF) 2008 To bridge funding and learning gaps for cleaner technology transformations. Offers scaled-up financing to middle-income countries to initiate cleaner technology transformations. Includes funds like the Clean Technology Fund (CTF) and the Strategic Climate Fund (SCF).
Adaptation Fund 2001 To finance concrete adaptation projects in developing countries party to the Kyoto Protocol. Financed by a share of proceeds from CDM project activities, it supports concrete adaptation projects in vulnerable communities.
Special Climate Change Fund (SCCF) 2001 To finance projects in adaptation, technology transfer, and various management sectors. Managed by the GEF, supports projects in sectors not directly funded through other funds such as energy, transport, and waste management.
Least Developed Countries Fund (LDCF) 2001 To support the least developed countries (LDCs) in their climate change initiatives. Finances the preparation and implementation of National Adaptation Programmes of Action (NAPAs) which identify priority activities for LDCs to adapt to climate change.
Carbon Pricing Mechanisms NA To internalize the cost of GHG emissions, incentivizing emission reductions. Involves setting a price on carbon emissions either through carbon taxes or emissions trading schemes (ETS), encouraging businesses to reduce emissions.
Nationally Determined Contributions (NDC) Partnership 2016 To enhance cooperation to achieve NDC goals under the Paris Agreement. Facilitates technical and financial support to help countries implement and enhance their NDC commitments for reducing emissions.



[2016] With reference to the Agreement at the UNFCCC Meeting in Paris in 2015, which of the following statements is/are correct?

  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 the greenhouse gas emissions so that the rise in average global temperature by the end of this century does not exceed 2ºC or even 1.5ºC 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

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