$300b NCQG target falls short of needs: Climate experts

The new collective quantified goal (NCQG) target of US$300 billion by 2035 is too low compared to the needs, and the horizon of meeting the target is too far, climate experts said in a press conference today (27 November).

There is no clarity on instruments whether it would be grants or loans, they argued, adding the COP29 conference involved all actors to achieve a 1.3 trillion finance target by 2035 without placing sole responsibility on developed countries.

The finance decision aims to promote the private sector as a major contributor to climate finance, which risks profit-oriented instruments, predominantly loans, and other neoliberal financial instruments, which could undermine climate justice, they added.

Climate Justice Alliance- Bangladesh, a platform of 42 civil society oirganisations (CSOs) and development partners, organised the press briefing at National Press Club in the city.

This program aimed at depicting the scenario of achievements drawn from the recently concluded COP 29 against expectations from it. During the press event, the speakers critically discussed key achievements of COP 29.

They highlighted the adoption of the New Collective Quantified Goal (NCQG) with an increased rate of $300 billion annually by 2035, along with an ambitious aspiration of reaching $1.3 trillion. What's more, after ten years of discussions, COP29 has finally agreed on rules of carbon trading under Article 6 of the Paris Agreement, which makes the carbon market fully operational. 

The regulations regarding international carbon trading under Article 6.2 and a centralized carbon market under Article 6.4 have now been finalized, however, they are flawed by issues with accountability mechanisms and significant complexity.

COP29 also decided to launch the 'Baku Adaptation Roadmap' and 'Baku High Level Dialogue' aiming at advancing the progress of the 'Paris Agreement' and supporting the implementation of the UAE framework to meet the GGA.

The keynote speaker Md Shamsuddoha, Chief Executive at CPRD said, "The NCQG target of USD 300 billion by 2035 is too low compared to the needs, and the horizon of meeting the target is too far; there is no clarity on instruments— grants or loan, lack of clarity on sources; it involves all actors to achieve 1.3T target by 2035 without placing sole responsibility on developed countries.

"The finance decision aims to promote the private sector as a major contributor to climate finance, which risks profit-oriented instruments, predominantly loans and other neoliberal financial instruments, being extensively used to meet the goal and failing climate justice thereby," he added.

He further said, "The COP29 underscored and encouraged creating fiscal space in developing country Parties through the use of innovative instruments, such as first-loss instruments, guarantees, local currency financing and foreign exchange risk instruments, which indicates a clear motive of the developed countries to embed neoliberal instruments in the climate finance regime, which directly contravenes climate justice."

Md Ziaul Haque, Director, Air Quality Management, Department of Environment said, "COP29 was expected to ensure MWP provide guidance on 1.5 degree Celsius-aligned NDC-3, the draft decision did not even refer to the 1.5-degree Celsius goal; it missed the chance to send high-level messages on the NDC update process.

Dr Suborna Barua, Professor of at University of Dhaka, criticized the loophole game by the developed countries with regard to climate finance.

 "The section 8(c) of the NCQG text has given formality to the financial flows through MDBs, significantly eroding the space for the developing countries to argue for grants-based climate finance in the future COPs", he added.

Manish Kumar Agrawal, Country Director at Concern Worldwide said, "The COP29 decision on setting indicators for 'enabling factors for implementing adaptation action, including the MOI', created a room for developed countries to impose conditions of transparency and governance against adaptation finance demand from the developing countries, which may ultimately hamper the real progress in adaptation."   

Shamsuddin Illius, a journalist from The Business Standard, also addressed the gathering, adding valuable insights. Representatives from various civil society organizations actively participated in the event, contributing to the discussions on the outcomes of COP29 and their implications for climate justice and finance.