Recently, in response to the pressing threat of climate change, the New Collective Quantified Goal on Climate Finance (NCQG) has emerged as a crucial initiative aimed at mobilizing resources for developing countries to combat climate challenges.It is a crucial topic for the upcoming 29th Conference of the Parties (COP29) to the United Nations Framework Convention on Climate Change (UNFCCC), which will take place later this year in Baku, Azerbaijan.
New Collective Quantified Goal on Climate Finance
- The NCQG is a new annual financial target that developed countries must meet from 2025 onward to provide climate finance to developing countries.
- It will replace the previous commitment of USD 100 billion per year that developed nations had pledged in 2009 but failed to deliver.
Importance of NCQG
- Empower Developing Countries: Developing countries are often disproportionately affected by climate change despite contributing less to greenhouse gas emissions.
- The NCQG provides them with the financial resources needed to invest in clean energy, adaptation measures, and climate-resilient infrastructure.
- Accelerate Climate Action: Climate change mitigation and adaptation require significant investments.
- The NCQG can unlock the necessary funds for developing countries to implement ambitious climate action plans aligned with the Paris Agreement’s goals.
- Promote a Just Transition: The NCQG can support a just transition to a low-carbon and climate-resilient economy, creating new jobs and opportunities while protecting vulnerable communities.
- Boost Global Cooperation: Fulfilling the NCQG necessitates collaboration between developed and developing countries.
- This fosters international cooperation and strengthens the global response to climate change.
Paris Climate Accord
- Legal status: It is a legally binding international treaty on climate change.
- Adoption: It was adopted by 196 countries at the Conference of the Parties COP 21 in Paris in December 2015.
- Goal: To limit global warming to well below 2° Celsius, and preferably limit it to 1.5° Celsius, compared to pre-industrial levels.
- Objective: To achieve the long-term temperature goal, countries aim to reach global peaking of greenhouse gas emissions as soon as possible to achieve a climate-neutral world by mid-century.India is a signatory to the Paris Agreement. India reaffirmed its commitment to the agreement in August 2022 by submitting an updated NDC to the UNFCCC. The NDC outlines India’s goals for 2021–2030.