By DERCO ROSAL
The Department of Finance (DOF) is urging swift action to finalize a new climate financing framework by next year, aiming to help developing countries balance growth and tackle climate challenges.
As a major element of the Paris Agreement, the country is calling for the completion of the New Collective Quantified Goal on Climate Finance (NCQG) before 2025.
“We must realize the urgency and value of the NCQG as a framework that will provide much-needed financial support and mobilization to address the evolving needs and priorities of developing countries,” DOF Chief of Staff and Undersecretary Maria Luwalhati Dorotan Tiuseco said during the 2024 High-Level Ministerial Dialogue on the NCQG on Climate Finance Oct. 9.
Tiuseco stressed that the NCQG requires commitment from both public and private sectors, reflecting ambition while considering varying responsibilities and national circumstances.
With the NCQG at its core, the meeting served as a prelude to Conference of the Parties (COP29), bringing together global ministers to discuss solutions for advancing the Paris Agreement.
Tiuseco emphasized the need for easier access to finance through multilateral development banks (MDBs) and funds, while calling for substantial public finance support for the NCQG, particularly in the form of grants or concessional loans.
In a statement on Oct. 21, the DOF said that a five-year timeframe with mandatory assessments starting in the third year should be established to address country-specific needs.
“We are firm in our stance that climate finance should be new and additional to any [official development assistance] ODA that may be provided,” Tiuseco said.
Additionally, Tiuseco co-facilitated a Climate Labs discussion on the NCQG with Swiss Ambassador Felix Wertli to resolve outstanding issues and build consensus ahead of COP29, with participation from countries including Canada, China, Denmark, France, India, Kazakhstan, the Maldives, Iran, the United Arab Emirates (UAE), Russia, Pakistan, Bolivia, Honduras, and Spain.
During the discussion, some Parties stressed that the NCQG aims to assist developing countries in meeting their Nationally Determined Contributions (NDCs) and National Adaptation Plans (NAPs) while supporting the Paris Agreement.
They also said that funding should come from public sources “flowing from developed countries” and be aligned with the needs of developing nations.
“It was also stressed that the NCQG must address challenges and integrate qualitative measures, such as the removal of barriers, high cost of capital, and high transaction cost for access, among others,” the DOF stated.
The Parties urged for transparency in funding contributions and usage to ensure effective mobilization towards achieving climate goals, with COP29 scheduled for Nov 11 to 22, 2024, in Baku, Azerbaijan.