UN Climate Change: Experts Discuss Global Goal for Climate Finance for First Time

Last month, experts met in Cape Town for the first time to discuss the new collective quantified goal on climate finance, and continued key discussions on the issue at Middle East and North Africa Climate Week in Dubai (MENACW 2022).

Sufficient climate finance is crucial to help developing countries green their economies and build resilience to the inevitable impacts of climate change, which include ever more intense and severe storms, drought and floods.

It is also essential to achieving the key Paris Agreement goal of limiting global average temperature rise to as close as possible to 1.5 degrees Celsius.

The new goal will be from the baseline of the current goal of mobilizing jointly USD 100 billion per year in 2025.

More than 200 participants met on site in Cape Town and virtually representing governments, Multilateral Development Banks, NGOs, academia and the private sector from all over the world.

Daniele Violetti, speaking on behalf of the Executive Secretary of the UNFCCC secretariat, said: “The ad hoc work programme has marked an unprecedented phase that presents a unique opportunity to build, increase and sustain trust. For the first time, governments agreed to undertake a three-year long process that is inclusive, transparent and participatory, leading to a new collective quantified goal on climate finance that will aim to accelerate the achievement of the long-term goal of the Paris Agreement and be informed by the best available science and by the needs and priorities of developing countries.”

Robert Moore, on behalf of the COP 26 Presidency, emphasized: “The discussions on the new collective quantified goal paved the groundwork for structural discussion on the real systemic change that we need to see to meet the long-term goals of the Paris Agreement. The process on the new collective quantified goal marks an inflection point within the climate finance discussions, and we have a one-off chance to set the finance goal which is fit for purpose to implement the Paris Agreement.

Mariam Allam, on behalf of the incoming COP27 Presidency, said: “Finance is a cornerstone of ambition, and a major enabler to drive implementation and progression on adaptation and mitigation action, as well as loss and damage, taking into account the priorities and needs of developing countries. The dialogue over the course of yesterday and today has been a good starting point for the deliberations on setting the Finance Goal, and we have closely followed the insightful discussions to get a deeper understanding of the multiplicity of considerations and overarching priorities surrounding the goal.”

Federica Fricano and Kishan Kumarsingh, co-chairs of the ad hoc work programme on the NCQG, said: “We are truly grateful for the active engagement in this first dialogue. We hope that the enthusiasm sustains until 2024 and that we deliver substantive, implementable and beneficial outcomes in terms of climate finance to advance the climate agenda and address climate change globally.”

The first dialogue marks one of 12 dialogues to be convened between 2022 and 2024, providing opportunities for inclusive and participatory discussions.

The co-chairs of the ad hoc work programme on the new goal will also hold regional consultations with interested Parties and stakeholders throughout the course of the year, the first of which was conducted during MENA Climate Week on 29th March in Dubai.

One of the key messages emerging from such consultations is that climate finance flows into the Arab region are directed at priority sectors such as water, agriculture, coastal zones, health, energy, transport and waste. However, the amount of finance remains below the estimated needs of the region.

Furthermore, access to current sources of finance remains a challenge for many Arab States. This is due to limited capacities and lack of available data on the one hand, and cumbersome application procedures and slow disbursement of approved funds from the climate funds.

Therefore, the new goal should address the needs and priorities of developing countries and ensure that climate finance is accessible.