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 and individual fund outflows. It offers potential interpretations of the NCQG targets and their timeframes, and considers collective vs. individual fund approaches, the inclusion of the Fund for Responding to Loss and Damage (FrLD), and implications for adaptation finance. The brief examines institutional, policy, resource mobilisation and demand factors affecting each fund’s potential approaches towards increasing outflows while safeguarding qualitative objectives such as equity and direct access. It also assesses how these funds contribute to mobilising public and private finance, both directly and indirectly, towards the USD 1.3 trillion goal. Finally, it offers recommendations with a view to the Baku to Belem Roadmap and ensuring that the UNFCCC fund-related commitments in the NCQG decision are interpreted in a way that maximises their transformative potential.
This resource was produced by the Climate Finance Advisory Service (CFAS), which offers negotiators, policy makers, and advisors in the poorest and most climate-vulnerable countries bespoke information and guidance for complex global climate finance negotiations. Find out more about CFAS and read more publications here.
