CCXG global forum, September 2024, Charlene Watson

Presentation from the CCXG global forum

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Options for the NCQG to encourage
and reward ambition
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Charlene Watson, Independent Consultant
Based on “The New Collective Quantified Goal on Climate Finance –Key Issues Note”
by C. Falduto, R. Jachnikand contributions by C. Watson
HybridCCXG Global Forum | 17-18 September2024

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Framing and context
•The need for ambition and collective action both emphasisedin the Global
Stocktake and by the IPCC
•Climate ambition is expressed by Parties in NDCs –as well as NAPs and
national plans –and the Paris Agreement encourages NDC progression
and highest possible ambition
•An NCQG supporting NDC implementation could lead to more ambitious
2025 NDCs, noting some NDC targets are conditional on climate finance

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Possible interpretations of ambition in the context of the
NCQG
i.More climate finance will flow to recipient Parties that have national
mitigation and/or adaptation goalsthat represent the highest possible
ambition in light of their national circumstances.
ii.More climate finance will flow to recipient Parties that deliver positive
national mitigation and/or adaptation impacton the ground, suggesting
the effectiveness of climate finance flows (public and private, domestic,
and international) in contributing to those impacts.
iii.More climate finance will be provided and mobilisedby contributors to
the NCQG in order to support and deliver greater mitigation and
adaptation ambition and implementation.

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Challenges to operationalising interpretations of ambition
•Unclear causal direction between finance and national targets –
finance could enable Parties to deliver higher ambition or higher national
ambition can enable finance
•Possible conditionalities on climate finance –ambitious NDCs could
support NCQG resource allocation, but top-down qualitative elements may
impeded access
•Ensuring countries are not penalisedfor their national circumstances
–for example those with an inability to articulate high ambition targets
•Lack of harmonisedinterpretations of ambition –Parties self-
determine how ambition is reflected in climate goals

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Key issues to consider
•Encouraging the communication of ambition by NCQG recipients –linking goals and
plans, significant domestic efforts, adaptation and mitigation results reporting in the
context of sustainable development.
Including, for example:
Ongoing development and support for investment planning
Party reporting on significant domestic policy and regulatory efforts
Reporting of impact and results

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Key issues to consider
•Encouraging NCQG providers to communicate how they deliver adequate and
predictable climate finance at scale –how Parties are meeting needs, putting in new
taxes, quantitative or qualitative pledges, the strategic priorities of the multilateral
channels and intermediaries, or non-Party actor communications for transparency
Including, for example:
Provider Party reporting against aspects of the NCQG
Efforts of multilateral channels and intermediaries towards the NCQG
Encouragement of non-Party stakeholder communications

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Key issues to consider
•Scaling the use of results-based and ambition-led financing–with instruments that
financially reward specific outcomes, noting that not all have proven effective or able to
work at scale
Including, for example:
Encouragement of instruments that reward specific outcomes
Matched funding from institutions of other philanthropy