Ahead of the major UN climate change conference, COP29 in Baku, the latest draft version of the wording for the new climate finance goal, known as the New Collective Quantified Goal (NCQG), has been released. 

This draft text could form the basis for the final negotiations at COP29 if Parties agree to build on it.

If accepted, this text will be critical in the negotiations as it guides Parties in their decision-making about adopting a robust and equitable finance deal at COP29. 

The Climate Action Network, along with other civil society organisations, says the Global North must start meeting the historical climate debt it owes to the Global South in the region of US$5 trillion per year, while bearing in mind that no amount of money can ever fully replace the lives lost to climate impacts.

The Global North can only begin clearing their debt with a COP29 agreement on finance that is made up of public money via grants, aimed at supporting the Global South in mitigating, adapting to, and recovering from the devastating impacts of escalating climate change, addressing loss and damage.

The new text presents both clarity and challenges, underscoring the urgent need to ensure that qualitative climate finance is delivered and grounded in equity, transparency, and accountability.

There are still unresolved issues, with many critical elements in brackets, which means they are still up for debate. At the same time, important components are missing.

Now more than ever, it is crucial to keep pressure on developed nations to meet their commitments, focusing on grants, not loans, and centering the voices of vulnerable communities.

What Must Happen Before COP29

Developed countries need to stop undermining the negotiations with delaying tactics and evading their historical responsibilities.

The structure of the new climate finance goal (NCQG) should remain straightforward, anchored in Article 9 of the Paris Agreement, and focused on the obligations of developed countries to mobilise and provide funding for developing nations.

For developing countries, it is crucial to remain vocal and clear about the scope and quality of the new finance goal.