A new UN Trade and Development (UNCTAD) report released ahead of COP29 calls for an ambitious New Collective Quantified Goal (NCQG) on Climate Finance from developed countries, highlighting escalating needs in developing countries, also citing research by the Imal Initiative for Climate and Development, which additionally served as a reviewer of the report.
UNCTAD’s findings include the following key insights:
Based on modeled projections using the United Nations Global Policy Model (UN GPM), developing countries require around $1.1 trillion for climate finance from 2025, rising to around $1.8 trillion by 2030, to deliver the Paris Agreement goals.
With developed countries assuming greater share of these expenditures, the NCQG mobilization target for developed countries would be $0.89 trillion in 2025, reaching $1.46 trillion by the fifth year of implementation.
This would imply a provision target of around 1.4 per cent of developed countries’ Gross Domestic Product (GDP) per year from 2025 until 2030 when the target should be reviewed, equivalent to around 2 per cent of developing countries’ GDP.
The need to commit to effort-sharing approaches based on GDP and GNI, to determine respective contributions from developed countries, with consideration of weighted adjustments based on historic emissions, in line with hashtag#CBDR-RC principles.
The imperative to have substantial portion of new climate finance provision from developed countries to come in the form of hashtag#grants, particularly for adaptation and loss and damage, with minimum terms for debt instruments counting towards the NCQG such as interest rates, grace periods, maturity periods, service fees and climate-resilient clauses.
The full UNCTAD report is available here.