Must-haves for adaptation finance in the New Collective Quantified Goal

This policy brief by the Stockholm Environment Institute outlines essential requirements ("must-haves") for the New Collective Quantified Goal (NCQG) to ensure that climate adaptation finance is sufficient, effective, and equitable. It provides specific recommendations for the NCQG's structure and suggests enhancements to the Enhanced Transparency Framework (ETF) to improve accountability for both providers and recipients of climate finance.

• Adaptation finance is currently insufficient, with the UN Environment Programme’s Adaptation Gap Report 2023 estimating that developing countries require approximately USD 215–387 billion per year this decade. The brief notes that funding for adaptation has lagged behind mitigation despite Paris Agreement commitments, and contributions actually declined in 2021 compared to 2020.
• The delivery of adaptation finance is often inequitable and relies heavily on non-concessional loans, which increase debt burdens for countries in debt distress. Specifically, in 2019–20, only 15% of adaptation finance flowing through multilateral development banks (MDBs) was grant-based. Furthermore, only 17% of total international public adaptation finance reaches local communities, and Indigenous Peoples receive less than 1% of climate finance.
• Adaptation effectiveness is hindered by fragmented, small-scale efforts and a lack of funding for transboundary climate risks. While 'locally led' adaptation is identified as effective, the brief argues that some risks require international or regional diplomatic efforts and cooperation to achieve 'transformational' resilience.
• Access to finance remains a significant barrier, particularly for Small Island Developing States (SIDS). The brief advocates for increasing the use of Direct Access and Enhanced Direct Access mechanisms, which empower national and local stakeholders and improve gender responsiveness, though these currently account for only a small percentage of adaptation funding.

APA

Stockholm Environment Institute (2024). Must-haves for adaptation finance in the New Collective Quantified Goal. https://www.sei.org/publications/must-haves-adaptation-finance-new-collective-quantified-goal/

Chicago

Stockholm Environment Institute. Must-haves for adaptation finance in the New Collective Quantified Goal. 2024. https://www.sei.org/publications/must-haves-adaptation-finance-new-collective-quantified-goal/.

Wikipedia

{{cite report |author=Stockholm Environment Institute |title=Must-haves for adaptation finance in the New Collective Quantified Goal |date=4 September 2024 |url=https://www.sei.org/publications/must-haves-adaptation-finance-new-collective-quantified-goal/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{stockholmenvironmentinstitute2024musthaves, author = {{Stockholm Environment Institute}}, title = {{Must-haves for adaptation finance in the New Collective Quantified Goal}}, institution = {Stockholm Environment Institute}, year = {2024}, month = sep, url = {https://www.sei.org/publications/must-haves-adaptation-finance-new-collective-quantified-goal/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }