The United Nations has published a draft on climate financing, set to be a key negotiation point at the upcoming COP29 in November in Baku, Azerbaijan. This draft outlines the diverse and often conflicting positions held by major country blocs as they attempt to forge the next global climate deal.
The “New Collective Quantified Goal” (NCQG) is intended to supersede the previous $100 billion annual commitment by developed nations to aid developing countries in combating climate change. However, the new financing goals are already stirring debate.
Arab countries have proposed that developed nations commit to at least $441 billion annually in grants from 2025 to 2029, aiming to mobilise additional private financing that could bring the total to $1.1 trillion per year. African nations have pushed this target even higher, calling for $1.3 trillion annually.
In contrast, donor countries such as the United States, the European Union, and others identified at the 1992 Rio Summit have dismissed these figures as unrealistic. These nations argue that their share of historical emissions has declined to below 30%, and are advocating for an expansion of the donor base to include emerging economies like China and Gulf countries, which have so far resisted such inclusion.
Canada has suggested that the new financial commitments should be shared by nations with a gross national income (GNI) above $52,000 per capita, or those in the top 10 cumulative greenhouse gas emitters with a GNI of at least $20,000 per capita. The European Union, while agreeing that developed nations should continue to lead in mobilising climate finance, insists that other high-emission countries with significant economic capabilities should also contribute.
With just over two months until COP29 begins, there is an urgent need for countries to bridge their differences and agree on a collective financing strategy. As COP29 President-Designate Mukhtar Babayev stated, “Parties need to accelerate their engagement on this top negotiating priority to reach consensus.”