The recently-concluded Bonn climate conference set the stage for the upcoming Conference of Parties-28 (COP28) in Dubai. One of the crucial topics discussed was the New Collective Quantified Goal (NCQG), which aims to reform the climate finance architecture.

The Importance of the New Collective Quantified Goal (NCQG):

The NCQG was established to address the inadequacies of climate financing and ensure sustainable support to developing nations. Its key focus areas include:

  1. Raising the commitment ceiling from developed countries: The NCQG seeks to increase the financial commitment of developed nations to support developing countries in their climate actions.
  2. Anchoring the evolving needs of developing countries: The NCQG aims to align climate financing with the scientific evidence of developing countries’ priorities, ensuring effective support.
  3. Addressing Loss and Damage: The NCQG recognizes the growing funding requirements for Loss and Damage resulting from failed or delayed financial support.
Understanding the Paris Climate Agreement:

The Paris Agreement, a legally binding international treaty on climate change, was adopted in 2015. Its primary aim is to limit the global average temperature increase to well below 2°C above pre-industrial levels and strive for 1.5°C. Key elements of the agreement include:

  1. Nationally Determined Contributions (NDCs): Countries submit their plans to reduce greenhouse gas emissions and build resilience to climate impacts.
  2. Long-Term Strategies (LT-LEDS): Countries are encouraged to formulate low greenhouse gas emission development strategies, providing a long-term vision for climate action.
Support Mechanisms in the Paris Agreement:

The Paris Agreement outlines mechanisms for supporting countries in their climate efforts:

  1. Finance: Developed countries are expected to provide financial assistance to less endowed and vulnerable nations. However, there are concerns regarding the fulfillment of the $100 billion per year commitment.
  2. Technology: The agreement establishes a technology framework to guide technology transfer and diffusion for climate action.
  3. Capacity-Building: The Paris Agreement emphasizes capacity-building actions in developing countries and calls for enhanced support from developed countries.
The Need for a New Finance Goal:

There is a pressing need to reform climate finance due to several reasons:

  1. Inadequate funding and reporting discrepancies: The promised $100 billion per year has not been fully delivered, and there are doubts about the accuracy of reporting. Funds are often inaccessible, delayed, and do not reach countries in need.
  2. High reliance on loans and equity: A significant portion of climate finance comes in the form of loans and equity, burdening developing countries with debt. This hampers their ability to effectively address climate change.
  3. Delayed access to funds: Countries most in need of climate finance face prolonged waiting periods and high-interest rates, exacerbating their debt burden.
Arguments of Developed Countries:

Developed countries argue that the NCQG should be a collective goal for all nations, placing responsibility on both developed and developing countries. However, this approach may burden developing nations, making it challenging for them to finance mitigation, adaptation, and sustainable infrastructure development. Furthermore, developed countries emphasize the role of private-sector investments and loans in climate finance, considering them a critical component of funding.

Important Points:

  • The New Collective Quantified Goal (NCQG) was discussed at the Bonn climate conference, aiming to reform climate finance architecture.
  • The NCQG focuses on raising commitment levels from developed countries, aligning with developing countries’ needs, and addressing Loss and Damage.
  • The Paris Agreement is a legally binding treaty adopted in 2015 to combat climate change and limit temperature increase.
  • Nationally Determined Contributions (NDCs) are submitted by countries, outlining their plans to reduce emissions and adapt to climate impacts.
  • Long-Term Strategies (LT-LEDS) provide a long-term vision for climate action, supplementing the NDCs.
  • The Paris Agreement includes support mechanisms such as finance, technology transfer, and capacity-building.
  • The need for a new finance goal arises due to inadequate funding, discrepancies in reporting, and reliance on loans and equity.
  • Developing countries face challenges in accessing funds, leading to delays and increased debt burden.
  • Developed countries argue for a collective goal, placing responsibility on all nations, and emphasize private-sector investments and loans in climate finance.
Why In News

In addition to climate finance, COP27 witnessed crucial discussions surrounding the formulation of a New Collective Quantified Goal (NCQG), signaling the global commitment to measurable and collective climate action. This goal aimed to consolidate efforts and establish a quantifiable target for countries to strive towards, reinforcing the urgency and ambition needed to tackle the pressing climate crisis.

MCQs about New Collective Quantified Goal

  1. Which goal does the New Collective Quantified Goal (NCQG) aim to achieve?
    A. To limit global average temperature increase to 2°C above pre-industrial levels
    B. To raise financial commitments from developed countries for climate action
    C. To establish a technology framework for climate change mitigation
    D. To enhance capacity-building actions in developing countries
    Correct Answer: B. To raise financial commitments from developed countries for climate action
    Explanation: The NCQG aims to increase the financial commitment of developed nations to support developing countries in their climate actions.
  2. Which agreement establishes a framework for global climate action and emphasizes financial assistance, technology transfer, and capacity-building?
    A. Kyoto Protocol
    B. Bonn Agreement
    C. Paris Agreement
    D. Copenhagen Accord
    Correct Answer: C. Paris Agreement
    Explanation: The Paris Agreement provides a framework for global climate action and emphasizes financial assistance, technology transfer, and capacity-building.
  3. What do Nationally Determined Contributions (NDCs) represent in the context of the Paris Agreement?
    A. Long-term strategies to reduce greenhouse gas emissions
    B. Financial commitments from developed countries to support developing nations
    C. Actions taken by countries to build resilience against climate change impacts
    D. Technology transfer mechanisms for climate change mitigation
    Correct Answer: C. Actions taken by countries to build resilience against climate change impacts
    Explanation: NDCs represent the actions communicated by countries to build resilience against the impacts of climate change.
  4. Why is there a need for a new finance goal in climate financing?
    A. Developed countries have fulfilled their financial commitments of $100 billion per year.
    B. Climate finance primarily comes in the form of grants, burdening developing countries with debt.
    C. Developing countries face challenges in accessing funds, leading to delays and increased debt burden.
    D. Private-sector investments and loans are the primary sources of climate finance.
    Correct Answer: C. Developing countries face challenges in accessing funds, leading to delays and increased debt burden.
    Explanation: The developing countries face challenges in accessing climate finance, leading to delays and increased debt burden, necessitating the need for a new finance goal.

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