Climate finance dilemma at COP29 casts NCQG uncertainty

Despite COP29 nearing an end, the final outcome regarding the NCQG (New Collective Quantified Goal) is yet to be determined. However, it is important as a major point of discussion and negotiation at the global UN climate summit.

Negotiators have made progress by streamlining the NCQG draft text, which is seen as a positive step forward. However, with over 15 pages still needing reduction, reaching the ideal 10-page document remains a challenge.

The NCQG is expected to be a significant increase from the previous $100 billion annual climate finance goal, with many experts demanding trillions in climate change damages

Developing countries are pushing for a substantial boost in funding to address the impacts of climate change and transition to low-carbon economies.

While there have been discussions and proposals, the final agreement on the NCQG will depend on the outcome of ongoing negotiations and the consensus among participating countries.

Any progress in COP29?

Article 6: Significant progress was made on Article 6 of the Paris Agreement, which establishes rules for international carbon markets.

New NDCs and BTRs: Several countries submitted new or updated Nationally Determined Contributions (NDCs) and Biennial Transparency Reports (BTRs).

Just Transition: The Second Annual High-Level Ministerial Roundtable on Just Transition took place, focusing on implementing the UAE’s just transition work program.

Global Carbon Market Framework: COP29 endorsed a global carbon market framework under Article 6, setting standards for carbon credit trading.

Challenges in COP29

Mitigation Work Program: Negotiations on the Mitigation Work Program stalled due to divisions among parties.

Loss and Damage and Adaptation: Progress on these issues was limited.

Finance: Discussions on climate finance, particularly for developing countries, remained contentious.

Developing countries are calling for an annual climate finance commitment of $1.3 trillion, which they view as essential to achieving their climate action targets and addressing the escalating impacts of climate change. Initially, wealthier nations were expected to be the primary contributors to this fund. However, there is growing pressure for emerging economies to also play a financial role. Developed nations are now advocating for the inclusion of emerging economies as significant contributors to the climate fund.

The fund is primarily designed to support developing countries, with a particular focus on Least Developed Countries (LDCs) and climate-vulnerable states. The Alliance of Small Island States (AOSIS) and the LDCs have made separate calls for dedicated funding, with the LDCs requesting $220 billion and AOSIS seeking $39 billion. Interestingly, both groups—typically aligned with the G77 + China—have taken independent stances on this matter.

As COP29 enters its second week and set to end on November 22, the question remains whether global leaders can overcome existing divisions and reach a meaningful agreement on climate finance.

Three Zeroes: a vision for a sustainable future

Addressing the climate crisis, a visionary call to action advocates for a revolutionary shift in values and lifestyles to safeguard our planet. The proposal centers on creating a “Three Zero” civilization: zero net carbon emissions, zero wealth concentration through social businesses, and zero unemployment by fostering youth entrepreneurship. 

This counter-culture envisions a lifestyle of zero waste and reliance on renewable energy. It rejects the current economic framework of limitless consumption and profit maximization, which are driving environmental destruction. Instead, it promotes a self-preserving system emphasizing social business to solve societal and environmental issues. 

Education would pivot from job-seeking to entrepreneurship, empowering young people to lead this transformation.