Baku, COP29 – Developing nations have firmly opposed any attempts to expand the contributor base for the New Collective Quantified Goal (NCQG), a new climate funding initiative meant to support climate actions in developing countries. This funding is intended to build on the previous commitment of $100 billion per year, which the developed world pledged in 2009 but only met in 2022.
Developing countries argue that including high-income developing countries like China and India as contributors would violate the provisions of the Paris Agreement. The Agreement clearly states that financial resources should flow from developed to developing countries to assist with mitigation and adaptation efforts.
One negotiator stated, “It is voluntary and there is no obligation for developing countries to contribute to NCQG. We are here to discuss NCQG under the Paris Agreement, which clearly defines the financial obligations of developed countries.”
There has been ongoing debate about the role of countries like China and India in contributing to climate finance. While developing countries such as China have been making voluntary contributions through South-South solidarity, these contributions fall outside the mandatory framework of the NCQG.
Developing nations have emphasized that contributions to the NCQG should remain the responsibility of developed countries. A spokesperson from the Like Minded Developing Countries (LMDC) group, which includes India, stated, “We are not here to renegotiate the Paris Agreement. Expanding the contributor base is a redline.”
As the discussions progress, the proposed quantum for the NCQG has raised concerns. With figures ranging from $200 billion to $300 billion being discussed informally, many developing nations have dismissed these amounts as inadequate. Ali Mohamed, chair of the Adaptation Gap Network, remarked, “Even the Adaptation Gap reports say the financing gap for adaptation alone is $400 billion. This proposed quantum is not even enough to address that.”
The G77, China, and the LMDC have called for a much larger figure – $1.3 trillion annually – to address the financial needs for climate adaptation and mitigation. These countries also stress that the majority of this funding should come in the form of grants, not loans, to avoid further economic burden.
As COP29 discussions continue, the European Union (EU) is expected to play a key role in moving the negotiations forward. Linda Kalcher, executive director of Strategic Perspectives, stated, “This meeting will only make progress if the EU leads the G7 countries with a strong offer.”
With key negotiations expected to finalize the NCQG, the clarity of financial commitments and delivery mechanisms remains a crucial topic for the developing world.
