Source: Indian Express

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Context

• The Bonn climate meeting did not define a new climate finance goal, leaving crucial issues unresolved for COP29 in Baku.
• Developing countries require significant climate finance to mitigate and adapt to climate change, with the current $100 billion target deemed insufficient.

Details

Key Points

• Search for a New NCQG:
  • A new climate finance goal above $100 billion per year is required by the end of 2024.
  • The Bonn talks resulted in an “input paper” listing various countries' demands.
  • Money is central to climate action, required for mitigation, adaptation, and data collection.
  • The NCQG must address the growing financial needs of developing countries.
  • Finalizing the NCQG is crucial for COP29's success in Baku.
• The Adequate Amount:
  • Developing countries need trillions of dollars annually to combat climate change.
  • A UNFCCC assessment estimates $6 trillion needed by 2030 for promised climate actions.
  • The global clean energy transition requires $4.3 trillion annually till 2030.
  • India proposed that developed countries should provide at least $1 trillion annually after 2025.
  • Arab and African countries have proposed targets of $1.1 trillion and $1.3 trillion respectively.
• Debate Over Contribution:
  • Annexure 2 of the UNFCCC lists 25 countries and the European Economic Community responsible for climate finance.
  • Developed countries argue for shared responsibility due to evolving economic statuses of countries.
  • China, the second-largest economy, resists additional climate finance responsibilities.
  • Developed countries acknowledge that the new target must exceed $100 billion annually.
  • Financial contributions must address equitable responsibility and current economic capacities.
• All Eyes on Baku:
  • COP29 in Baku is crucial for finalizing the new NCQG.
  • The $100 billion target was initially proposed by the US at COP15 in Copenhagen.
  • The outcome of COP29 will significantly impact global climate finance and action.

About New Collective Quantified Goal (NCQG):

Purpose:

• NCQG aims to establish a new climate finance goal above the current $100 billion annually.

Necessity:

• Needed to address the increasing financial requirements for climate action in developing countries post-2025.

Process:

• Developed through international negotiations, with input papers leading to a formal draft for COP29.

Challenges:

• Defining contributions, monitoring financial flows, and ensuring accountability among developed countries.

Expectations:

• Developing countries demand trillions of dollars annually to effectively mitigate and adapt to climate change impacts.

About COP29

Location:

• Scheduled to take place in Baku, Azerbaijan, in November 2024.

Significance:

• COP29 is pivotal for finalizing the NCQG, impacting future climate finance commitments.

Focus:

• Discussions will centre on defining a new, adequate climate finance goal and addressing related challenges.

About UNFCCC:

Global Climate Framework:

• The United Nations Framework Convention on Climate Change (UNFCCC) is an international treaty aimed at addressing climate change and its impacts.

Establishment:

• Adopted in 1992, it provides the foundation for global cooperation on climate action, facilitating negotiations and agreements among nations.

Key Functions:

• UNFCCC facilitates annual conferences (COPs) to review and advance climate goals, supports scientific research and data sharing, and oversees the implementation of international climate agreements.

Principles:

• Guided by principles of equity, common but differentiated responsibilities, and the precautionary approach, UNFCCC seeks to achieve sustainable development while combating climate change.

Membership:

• It boasts nearly universal membership, with 197 parties (196 countries and the European Union) committed to addressing climate change.

Sources:

Indian Express

PRACTICE QUESTION Q. Examine the responsibilities of developed countries in mobilizing climate finance for developing nations. How can equitable financial contributions be ensured in the context of evolving economic landscapes?