Global Efforts Intensify in Crafting New Climate Finance Goal from Billions to Trillions

Recently, a significant phase in the continuing international efforts to combat climate change began in Cartagena, Colombia. Nearly 300 representatives, comprising a diverse mix of Parties and non-Party stakeholders, gathered for the ninth technical expert dialogue (TED9) and the first meeting under the ad hoc work programme on the new collective quantified goal on climate finance (NCQG).

This gathering marked a significant transition from technical discussions to a more politically driven agenda, aimed at formulating a draft negotiating text for presentation at the upcoming COP29 UN Climate Change Conference scheduled for November.

Daniele Violetti, Senior Director of Programmes Coordination at UN Climate Change, emphasized the critical importance of achieving a successful outcome on the new finance goal. Notably, this achievement is not only crucial for the success of COP29 but also sets the trajectory for transformative change necessary to mobilize and allocate finance effectively, with a focus on addressing the needs and priorities of developing nations.

Transitioning from the previous commitment to mobilize USD 100 billion annually by 2020, the Paris Agreement extended this goal to 2025. Furthermore, it called for setting a new finance goal post-2025, taking into account the specific requirements of developing countries. The magnitude of financial resources required is substantial, with global models indicating the necessity of trillions of dollars annually. The inaugural Needs Determination Report of the Standing Committee on Finance highlighted the need for nearly USD 6 trillion to implement climate action plans in developing countries by 2030, with adaptation needs not fully accounted for.

Simon Stiell, UN Climate Change Executive Secretary, highlighted the urgency of a significant increase in climate finance, asserting that redirecting trillions of dollars towards a cleaner and more resilient future is both imperative and achievable.

An ad hoc work program was established at COP26 in 2021 to begin the process of developing the new financing objective. The goal of this program, which includes several technical talks, is for COP29 to produce a draft negotiating text. Recent deliberations have focused on critical technical aspects, such as time frame, structure, amount, mobilization, and provision of financial sources, as well as quality and transparency arrangements.

Building on the groundwork laid in previous discussions, COP28 in Dubai marked a transition towards crafting a draft negotiating text. In line with this, at least three TEDs and accompanying meetings are scheduled for 2024, fostering inclusive dialogue among Parties and stakeholders.

Looking ahead, TED10 is scheduled for the Bonn Climate Change Conference in June, followed by TED11 in the autumn. These dialogues will inform the formulation of the draft negotiating text, which will be presented for consideration at COP29 in November.

As global stakeholders intensify efforts to address climate change, the formulation of a robust and inclusive climate finance goal stands as a cornerstone in the journey towards a more sustainable future.