A climate finance architecture fit for achieving the new collective quantified goal

2024 was expected to be the year of climate finance. At COP29 in Baku, Azerbaijan, Parties to the UNFCCC set a new climate finance goal—the New Collective Quantified Goal (NCQG)—which is to take effect in 2025. Intended to reflect the needs and priorities of developing countries and catalyze climate action, the outcome was deemed a failure by the Global South: a commitment of just USD 300 billion annually from developed to developing nations, widely criticized as inadequate and unfairly decided. 

 

While the NCQG emerged from the multilateral UNFCCC process, its success depends on the broader international financial architecture. For it to be effective, international finance structures must support its implementation. This chapter explores the key elements of an international financial architecture that could support the NCQG's objectives. 

Originally published in October 2024 as part of Building New Foundations: Reimagining the International Financial Architecture, a report by the Global Policy Forum (GPF), this chapter was among several institutional contributions. It also informed CSE’s advocacy efforts leading up to COP29.