New Collective Quantified Goal on Climate Finance (NCQG)

Short Notes or Revision Notes 

GS-1 Mains

Question :  Discuss the upcoming negotiations on the New Collective Quantified Goal (NCQG) on climate finance, with a focus on the context, key considerations, and India’s stance.

Context

  • Upcoming meeting in Colombia to discuss the post-2025 climate finance goal.

Climate Finance

  • Large-scale investments for mitigating (reducing emissions) or adapting to climate change.
    • Adaptation: Preparing for the negative effects of climate change.
    • Mitigation: Reducing greenhouse gas emissions to lessen climate change impacts.

Who Should Finance?

  • Developing countries argue developed nations should provide financial assistance.
    • Developed nations’ historical emissions are a major cause of climate change.
  • The UN Framework Convention on Climate Change (UNFCCC) requires high-income countries to provide climate finance.
    • Developed countries pledged $100 billion annually by 2020 (unfulfilled pledge).
    • Green Climate Fund (GCF) established in 2010 as a key delivery mechanism.
    • Paris Agreement reinforced the $100 billion target and extended it to 2025.

New Collective Quantified Goal (NCQG)

  • Successor to the $100 billion annual goal by developed countries, expiring in 2025.
  • Needs to be at least $100 billion per year and consider developing countries’ needs.
  • Current $100 billion goal is inadequate (developing country needs estimated at $1-2.4 trillion annually).
  • NCQG negotiations:
    • Developing countries focus on:
      • Amount of money
      • Timeframe for disbursement
      • Non-debt financial instruments
    • Developed countries focus on:
      • Who contributes
      • Aligning all financial flows

India’s Stand

  • Only country to propose a specific amount: $1 trillion per year.
  • Proposed timeframe: 10 years with separate annual mobilization targets for each 5-year period.

The Road Ahead

  • Need to ensure the NCQG process considers equity and justice.
  • Differences in approach between developed and developing countries reflect the varying needs and priorities regarding climate change.

About UN Climate Change Conferences (COP)

  • International gatherings for discussing and negotiating global climate change efforts.
  • Organized under the UNFCCC (established in 1994).
  • Held annually, with each conference numbered sequentially.
  • Provide a platform for:
    • Assessing progress on climate change
    • Negotiating agreements
    • Making decisions on climate action issues

 

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