What Could the New Climate Finance Goal Look Like?

The briefing examines the ongoing negotiations for the New Collective Quantified Goal (NCQG) on climate finance, focusing on seven critical areas of contention: the financial target amount, the identity of contributing countries, the applicable time frame, the inclusion of loss and damage, alignment with Article 2.1(c) of the Paris Agreement, the quality of finance (concessionality, accessibility, predictability, and effectiveness), and the mechanisms for transparently tracking progress.

• Developing countries' financial needs for climate action are estimated to be significantly higher than previous goals, with some reports suggesting cumulative requirements of $5.8-$5.9 trillion or $7.8-$13.6 trillion by 2030. The Independent High-Level Expert Group on Climate Finance (IHLEG) estimates that emerging markets and developing countries (excluding China) need nearly $2.4 trillion annually by 2030, with approximately $1 trillion per year required from international sources.
• There is a dispute over which countries should contribute to the NCQG. Developed countries argue that the global economic landscape has changed since 1992 and that additional nations should contribute based on their current income and historical emissions. Conversely, developing countries maintain that the responsibility remains solely with developed nations as established in the UNFCCC and Article 9 of the Paris Agreement.
• Negotiators are debating the time frame for the NCQG, with proposals ranging from five to 20 years. A five-year cycle would align with the Paris Agreement's NDC and Global Stocktake processes, while a 10-20 year window would offer more stability, though it makes projecting future financial needs more difficult.
• Whether the NCQG should include 'loss and damage'—impacts beyond what communities can adapt to—is a point of contention. Developing countries advocate for its inclusion and the creation of specific subgoals, noting that economic costs for loss and damage could reach $447-$894 billion annually by 2030. Developed nations argue that such funding is voluntary and handled through separate negotiations.
• There is a debate on how the NCQG relates to Article 2.1(c) of the Paris Agreement, which concerns making all finance flows consistent with low GHG emissions and climate-resilient development. Developed countries suggest a 'global investment goal' where the NCQG is an inner layer of funds for specific recipients within a broader commitment by all parties to shift financial systems.
• The quality of climate finance is considered as important as the total amount, focusing on four pillars: concessionality (attractive rates for debt-distressed nations), accessibility (reducing complex processes), predictability (clear targets and timelines), and effectiveness (measurable climate impact). The IHLEG suggests a five-fold increase in concessional finance is necessary by 2030.
• To avoid the accountability failures of the $100 billion goal, the NCQG is expected to use the Enhanced Transparency Framework (ETF) to track progress. This would require developed countries to report financial support, including methodologies and definitions, potentially with the Standing Committee on Finance (SCF) providing progress reports.

APA

World Resources Institute (2024). What Could the New Climate Finance Goal Look Like? https://www.wri.org/insights/ncqg-key-elements

Chicago

World Resources Institute. What Could the New Climate Finance Goal Look Like? 2024. https://www.wri.org/insights/ncqg-key-elements.

Wikipedia

{{cite report |author=World Resources Institute |title=What Could the New Climate Finance Goal Look Like? |date=29 May 2024 |url=https://www.wri.org/insights/ncqg-key-elements |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldresourcesinstitute2024what, author = {{World Resources Institute}}, title = {{What Could the New Climate Finance Goal Look Like?}}, institution = {World Resources Institute}, year = {2024}, month = may, url = {https://www.wri.org/insights/ncqg-key-elements}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }