1887

OECD/IEA Climate Change Expert Group Papers

This series is designed to make available to a wider readership selected papers on climate change issues that have been prepared for the OECD/IEA Climate Change Expert Group (CCXG). The CCXG (formerly called the Annex I Expert Group) is a group of government delegates from OECD and other industrialised countries. The aim of the group is to promote dialogue and enhance understanding on technical issues in the international climate change negotiations. CCXG papers are developed in consultation with experts from a wide range of developed and developing countries, including those participating in CCXG Global Forums.

The full papers are generally available only in English.

The opinions expressed in these papers are the sole responsibility of the author(s) and do not necessarily reflect the views of the OECD, the IEA or their member countries, or the endorsement of any approach described therein.

English

The New Collective Quantified Goal on climate finance

Options for reflecting the role of different sources, actors, and qualitative considerations

At the UNFCCC COP21 in 2015, Parties decided that a New Collective Quantified Goal (NCQG) on climate finance shall be set prior to 2025, from a floor of USD 100 billion per year, taking into account the needs and priorities of developing countries. The ad-hoc work programme on the NCQG commenced at the beginning of 2022 and will conclude in 2024. In this context, the present paper puts forward key findings that can help to inform the final months of international discussions relating to the NCQG. First, the paper provides a stocktake of available evidence highlighting that climate action in developing countries requires significant levels of financing that can be met from a wide, and complementary, range of existing and potential new sources. Second, the paper considers how the NCQG could reflect various individual elements, grouped in three clusters: international public finance, private finance, and domestic efforts. Without pre-empting the future structure of the NCQG, the discussion in this paper illustrates how to potentially reflect both the importance of international public finance as well as the need to scale up private finance, while also recognising the magnitude and effectiveness of such finance depends on the domestic context and actions by all Parties. Third, the paper explores issues relating to tracking and assessing progress towards the future goal. These indicate that while certain elements can be tracked in monetary terms, others would require a different type of quantified indicators or qualitative information. These considerations also highlight that although data and information stemming from the Paris Agreement’s Enhanced Transparency Framework will be central, further sources will be needed for such progress assessments to be as comprehensive and policy relevant as possible.

English

Keywords: Climate finance, UNFCCC, climate change, Paris Agreement, New collective quantified goal
JEL: F35: International Economics / International Finance / Foreign Aid; Q54: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Climate; Natural Disasters and Their Management; Global Warming; Q56: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / Environmental Economics / Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth; F63: International Economics / Economic Impacts of Globalization / Economic Impacts of Globalization: Economic Development; Q01: Agricultural and Natural Resource Economics; Environmental and Ecological Economics / General / Sustainable Development; F64: International Economics / Economic Impacts of Globalization / Economic Impacts of Globalization: Environment
This is a required field
Please enter a valid email address
Approval was a Success
Invalid data
An Error Occurred
Approval was partially successful, following selected items could not be processed due to error