A shrinking pot: how can the LDC climate fund keep up with targets?

IIED

At the 2024 UN climate negotiations held in Baku (COP29) parties set a new climate finance goal − the New Collective Quantified Goal (NCQG) (PDF). This goal sets the target to mobilise finance for climate action from a new floor of $300 billion to $1.3 trillion per year by 2035.

A key operational element of the NCQG decision is paragraph 16, which calls for at least tripling (by 2030, relative to 2022 levels) annual outflows from multilateral climate funds established under the UNFCCC.

One of the funds expected to deliver on that promise is the Least Developed Countries Fund (LDCF). It is the only UN-backed climate fund dedicated entirely to supporting the 44 least developed countries (LDCs) adapt to the effects of climate change.

This insight is part of a series taking a deep dive into the world’s multilateral climate funds. IIED researchers and expert guest voices examine how to unlock finance from these funds and get innovative and sustainable adaptation projects off the ground in countries hit hardest by climate change

View resource

Beyond Tripling: The Role of UNFCCC Climate Funds in Delivering the NCQG

Climate Finance Advisory Service

This policy brief analyses the NCQG commitment to at least triple annual outflows from UNFCCC climate funds by 2030 (from 2022 levels) and to significantly increase their share in delivering the USD 300 billion climate finance goal for 2035. It reviews past trends in the share of climate finance delivered through those funds, alongside total… Read more »

More details.

Bridging Gaps, Facing Limits: Opportunities and Constraints of Private Finance under the New Collective Quantified Goal (NCQG) for LDCs and SIDS.

Climate Finance and Advisory Service

Least Developed Countries (LDCs) and Small Island Developing States (SIDS) are the countries that are most vulnerable to climate change, facing threats posed both by slow-onset processes and extreme weather events. They bear disproportionate shares of climate risk relative to historic responsibility and have very limited resources and capacity to deal with the climate crisis…. Read more »

More details.

Reframing transformational adaptation in the UNFCCC: lessons and pathways

IIED

This briefing examines the evolution of ‘transformational adaptation’ within the scientific community and United Nations Framework Convention on Climate Change (UNFCCC), highlighting its contentious reception among developing nations. The concept of transformational adaptation has evolved from incremental and intermediary adaptation practices. By the 2010s, scholarly publications recognised that incremental changes would be insufficient to address… Read more »

More details.