Africa is demanding a significant increase in climate finance to address the growing impacts of climate change. The continent is calling for at least $5.9 trillion by 2030 to fund mitigation.
The New Collective Quantified Goal (NCQG) is making the push, aiming to get solid solutions ahead of the Azerbaijan COP29 Summit.
True to that, Western countries have fallen short on their climate finance commitments. For instance, the $100 billion pledged at COP19 in 2009, was met in 2022, two years late of the specified deadline. Such failure has eroded trust between developed and developing countries and underscores the need for a more reliable and ambitious financing framework.
Moreover, Africa’s climate financial needs have significantly increased since the initial $100 billion target was set. According to the UNFCCC, developing nations require between $5.8 and $5.9 trillion by 2030.
Various stakeholders have proposed different targets for the NCQG. India advocates for at least $1 trillion annually, while UNCTAD suggests a phased approach. The Arab Group proposes $1.1 trillion annually. However, several key issues the need for transparency have been unresolved.
This explains why the current global financial architecture is inadequate in meeting climate and Sustainable Development Goals. For experts and funders to fully participate, they call for a reformed, transparent, coordinated and inclusive GFA.
Meanwhile, African negotiators like the NCQG aim to incorporate diverse financial instruments, address debt distress, and propose necessary reforms. This will emphasize the need for developed countries to take the lead in providing climate finance. They argue that this is necessary to ensure fair contributions and address historical emissions.
The financial instruments essential for effective climate adaptation, include grants, concessional loans, insurance schemes, green bonds, debt relief, blended finance, and catastrophe bonds.
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