By Avantika Goswami and Sehr Raheja
2024 is the year of climate finance. At the Conference of the Parties 29 (COP29) in Baku, Azerbaijan, Parties to the United Nations Framework Convention on Climate Change (UNFCCC) are expected to determine a new climate finance goal. The New Collective Quantified Goal (NCQG) on climate finance is due to come into force from 2025. It is expected to be a goal that reflects the needs and priorities of developing countries, to catalyse climate action.
Although the NCQG will be an outcome of the multilateral UNFCCC process, it is situated within the broader context of the global financial system and finance architecture. Thus, to arrive at a goal that is fit for purpose and serves the needs of developing countries, it is crucial for the landscape of international finance to support its implementation. This chapter outlines the key markers that could characterize a climate finance structure capable of supporting the achievement of the NCQG.