3Ci (Cities Commission for Climate Investment)’s Post

Our latest publication “NDCs, NCQG, and Financing the Transition”, brings clarity to the debate around “climate finance” by distinguishing the different categories of finance required to address global climate challenges. As #COP29 approaches, this briefing note underscores the critical importance of a clear and well-defined New Collective Quantified Goal (NCQG) for financial flows from high-income to low-income countries. The note outlines four principles to guide the #NCQG debate, highlighting the need for specific types of funding and sources—whether from private finance, MDBs, or concessional and grant payments. In addition, updated and higher ambition Nationally Determined Contributions (NDCs) are essential to unlocking large-scale investments that can drive the energy transition. Explore our insights: https://lnkd.in/dhArVGK5

Today is Finance, Investment and Trade Day at #COP29. The $100 billion climate finance goal set at #COP16 in 2010 has yet to be met, as countries face challenges in defining contributions and allocations. To address this, Paris Agreement nations are working on a more concrete, actionable funding plan, set to take effect in 2025. Our Commission, "A Changing World – Germany and the Global South," focusses on climate finance as one of its core priorities. It aims to shape actionable recommendations for Germany’s partnerships with the Global South amid evolving global dynamics. “The #greentransition and its financing needs present an array of opportunities to forge new global partnerships between public and private sector actors. I look forward to contributing to the development of an effective engagement strategy around these opportunities.” - Maria-Yassin Jah, Head of Transition Finance Advisory, SLR Consulting Jah is one of our esteemed Commission members. Learn more about the Commission’s work and meet the other members: https://lnkd.in/d_8uC8yN #GermanyandtheGlobalSouth #climatechange #climatefinance

🌍 It was always going to be the #FinanceCOP. 🌱 Big ambitions, bold commitments – discussions lasting until early morning - #COP29 closes with commitment: ➡️ Triple finance to developing countries—from the previous target of $100 billion annually to $300 billion annually by 2035. ➡️ Unite all stakeholders to scale up public and private financing for developing countries to a transformative $1.3 trillion per year by 2035. The message is clear: with vulnerable nations bearing the brunt of climate impacts, collaboration across borders, sectors, and industries is non-negotiable. Public and private sectors must come together to deliver the financing needed for a #CarbonZero future. 🌿 One #sustainable world. One #shared responsibility. Let’s make it happen. 🌍 For the detail on #CEE, contact #CEC #Sustainability #ClimateFinance #NetZero #GlobalCollaboration 

#COP29 delegates plan to set NCQG at $300 billion per year! The United Nations Climate Conference, COP29, ongoing in Baku, Azerbaijan, is set to conclude in just a few hours. Originally scheduled to end on November 21, the conference was extended by one day due to intense discussions and debates over the climate finance target. The final decision is expected to be announced during the closing session at 7:00 PM local time at the Nezami Hall of the Olympic Stadium. However, the draft climate finance agreement unveiled during the conference has sparked strong objections from representatives of developing countries, with many calling it unacceptable. The draft includes a target of $1.3 trillion in New Collective Quantified Goal (#NCQG) for climate financing, with a commitment to provide $300 billion annually by 2035. However, it is expected that the first year will only see $100 billion, which experts have deemed insufficient. Particularly concerning to experts is that the finance provided under this agreement will not adequately benefit the least developed and most affected countries. They argue that the amount allocated is far from enough to address the climate crisis, and it will be limited to the promises of developed nations alone. Over the past few decades, developed countries have failed to deliver on their climate finance promises, leaving many climate-impacted countries without adequate funding. Experts warn that if proper funding and policies are not established now, the rebuilding and adaptation programs for the most affected nations will not succeed. Sohanur Rahman, Executive Coordinator of YouthNet Global, stated, "The commitments from developed countries in this agreement are not enough. It is crucial to secure proper funding for the countries impacted by climate change. This is not charity, it is our fair share." Additionally, experts have criticized the modest increase of 1% to 3% in adaptation finance, arguing that this amount is still far from sufficient. They believe that even if the funding is implemented correctly, it will not be enough to support the countries most affected by climate change. The inclusion of double counting and the blending of Official Development Assistance (ODA) with climate finance is expected to complicate the implementation of the agreement, experts warn. They also argue that the 2035 target for achieving the financing goals is far too late, potentially resulting in the loss of thousands of lives and extensive financial damage. Furthermore, the status of financial funds such as the Green Climate Fund, LDC Fund, and adaptation funds will remain largely unchanged, which many experts consider to be inadequate and insufficient for addressing the climate crisis.

Amid a rocky start to 2025, global climate finance is feeling the strain—with the U.S. stepping away from the Paris Agreement and an $11B finance plan on the chopping block. Yet, there’s a silver lining: last year’s COP29 secured a pledge from developed nations to mobilize $300B annually by 2035 to support emerging economies. While this falls short of the $1T per year needed by 2030, experts argue that ramping up contributions from multilateral development banks and unlocking private capital can bridge the gap. As we look ahead to COP30 in Brazil, the call for robust policy reforms and greater transparency is stronger than ever. #ClimateFinance #COP29 #COP30 #ClimateAction #Sustainability #GreenEconomy #ParisAgreement #CleanEnergy #ESG #SustainableDevelopment https://lnkd.in/dd753iYK

Which countries are leading the transition, and which are lagging behind? An analysis of 70 countries might surprise you and also offer some paths forward on national climate progress. Ahead of updated national climate commitments (NDCs) coming ahead of COP30, the collection of investors and researchers behind the Assessing Sovereign Climate-related Opportunities and Risks (ASCOR) project looked at 70 countries to understand the transition progress and challenges globally. 𝐇𝐞𝐫𝐞 𝐚𝐫𝐞 𝐭𝐡𝐞𝐢𝐫 𝐤𝐞𝐲 𝐭𝐚𝐤𝐞𝐚𝐰𝐚𝐲𝐬: 𝐄𝐦𝐢𝐬𝐬𝐢𝐨𝐧𝐬 𝐏𝐚𝐭𝐡𝐰𝐚𝐲𝐬 • 40 of the 70 countries assessed have reduced their emissions over the past five years and almost all have established medium-term targets. • Not a single country has a historical emissions trend or 2030 target that aligns with its national 1.5oC benchmark. Only a few are aligned with their ‘1.5oC fair share’ (an allocation based on equity principles) in their emissions trends or 2030 targets. 𝐂𝐥𝐢𝐦𝐚𝐭𝐞 𝐏𝐨𝐥𝐢𝐜𝐢𝐞𝐬 • 40 out of the 70 countries have established a legal framework for national climate policy through a climate framework law. • Countries perform poorly on commitments to phase out fossil fuel subsidies and production, making finance flows inconsistent with a 1.5ºC future. 𝐂𝐥𝐢𝐦𝐚𝐭𝐞 𝐅𝐢𝐧𝐚𝐧𝐜𝐞 • Most of the developed countries (81%) assessed fail to contribute or commit to their proportional share of the US$100 billion international climate finance goal. • Only one-third of the developing countries assessed have been transparent about the costs of their mitigation and adaptation measures. This may constrain public and private finance flows towards these objectives. We need more progress and more action in the months ahead! Check out more terrific analysis from the report here: https://lnkd.in/ePTSR9bu #climate #transition #decarbonization #netzero #emissions #nations #ndcs #cop30 #climateresearch #climatedata #investors #climatefinance

🌍 Climate Finance and the G20 at COP29: Progress or Missed Opportunity? 🌱 As the COP29 summit unfolds in Baku, Azerbaijan, the G20 leaders convened in Rio de Janeiro to address a pivotal piece of the climate puzzle—finance. Representing over 80% of global emissions and 85% of the world economy, the G20's decisions have outsized influence on our planet's future. But are we making strides, or just treading water? Key Takeaways from the G20 Climate Finance Meeting: From Billions to Trillions The G20 committed to scaling up climate finance dramatically, aligning with negotiations for a New Collective Quantified Goal (NCQG) under the Paris Agreement. A hopeful sign, but will the dollars follow the declarations? A Fossil Fuel Reality Check Here’s the contradiction: while pledging climate action, G20 nations spent $1.1 trillion in fossil fuel subsidies in 2022 and an estimated $945 billion in 2023. The declaration sidestepped the critical conversation about phasing out fossil fuels—a glaring omission that climate negotiators won't overlook. The 1.5°C Challenge UN Secretary-General António Guterres reiterated the urgency of aligning national commitments with the 1.5°C target. His call to triple renewable energy capacity by 2030 and halt deforestation stands as a reminder of the tangible actions needed. Tackling Climate Disinformation In a promising move, Brazil announced a joint initiative with UNESCO and the UN to combat climate disinformation. This effort will be pivotal in fostering informed public engagement as the world gears up for COP30 in Brazil. What’s Missing? While the commitments to escalate climate finance are commendable, the absence of explicit plans to phase out fossil fuels looms large. The world cannot afford to ignore this elephant in the room, especially when fossil fuel subsidies remain at staggering levels. The G20’s actions—or inactions—send a ripple effect across global climate negotiations. As COP29 progresses, the fragile trust between nations hangs in the balance. Will these talks lead to actionable steps, or will we see more unfulfilled promises? Why This Matters The path to a sustainable future lies in bold decisions. Finance is the lifeblood of climate action, but without addressing the root cause—fossil fuel dependency—progress will remain elusive. Let’s keep the conversation going. What are your thoughts on the G20’s role in global climate commitments? Is this a step forward or a missed opportunity? 👇 Share your views in the comments! Let's spark a dialogue that drives action. 💬 #ClimateFinance #COP29 #Sustainability #RenewableEnergy #G20 #ClimateAction #arewedoingenoughtosaveourplanet

#COP29 decides #climatefinance goal, based on the outstanding issues last week, where did we land? * Should the contributor base be expanded to include high income developing countries? Only on a voluntary basis... and unclear if it will all be accounted for in the core goal. * What should the $$ amount be? $1.3 trillion per annum investment goal by 2035 with a $300 billion public "core" *Should the goal only focus on public money or be expanded to speak to all sources including global capital markets? it has a public "core" and a broader "investment goal" for all actors *Does debt even count as climate finance? yes and still there are calls to scale up grant and highly concessional finance for least developed countries and small island developing states and developing countries with high levels of debt *Is the financial system fit for purpose to deliver on Paris Agreement objectives or does it need reform? COP29 invites financial institutions, including MDBs, to consider shifting their risk appetites for climate finance and sustainable development in developing countries amongst calls to scale up non-debt and highly concessional instruments #NCQG #BakuBreakthrough #UNFCCC

#COP29 ends with meaningful progresses including the tripling of the climate finance “core” goal to USD 300 billion of public fund per year and an enlarged goal of USD 1,3 trillion per annum of climate investment in developing economies by 2035, notably through private capital mobilization at scale. Broad mobilization and enhanced cooperation across all stakeholders will be needed to deliver on such enhanced ambition. After years of stagnation, #blendedfinance could ultimately scale up, even if roadblocks remain numerous and well known. The agreement on article 6.4 is a meaningful step towards the development of more credible international carbon markets. After years of decline, it could mark the beginning of more sustainable voluntary carbon markets development..still early to say as implementation details are not finalized, but an area to watch. More than ever, considering the uncertain geopolitical context, what matters most will be single country willingness and commitment to implement and deliver….the new 2035 NDCs, to be released by COP30, will provide a good indication of the global climate momentum. #climatefinance,#privatecapitalmobilization,#carbonmarkets

#COP29 came to a close in the early hours of Sunday, November 24, as a new #ClimateFinance goal was adopted: one that is three times higher than previously, but less than a third of what developing countries need every year to manage the climate crisis. Rich countries will "take the lead" in channeling US$300 billion per year to the Global South until 2035, from “a wide variety of sources” including public, private and multilateral finance. This falls short of the US$1.3 trillion climate finance experts estimate that vulnerable countries need to receive annually by 2035 to help them mitigate and adapt to #ClimateChange. As such, it has been described as "not enough" and a "bitter disappointment" by the likes of the World Resources Institute and Greenpeace. One glimmer of hope is the launch of the ‘Baku to Belém Roadmap to 1.3T’, which will see the COP29 and #COP30 presidencies work together over the next year to scale up climate finance flows to US$1.3 trillion by 2035. https://lnkd.in/e-j65Rr6 #NCQG #ChiefSustainabilityOfficer