The Philippines is calling for urgent action to finalize the New Collective Quantified Goal on Climate Finance (NCQG) before 2025 to support developing countries in balancing growth and addressing climate impacts.

The NCQG is a key element of the Paris Agreement designed to create a new financing framework that will provide developing countries with a scaled up financing goal to support their respective climate actions.

“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. It is our responsibility to come together and create an NCQG text that genuinely reflects these needs,” Department of Finance (DOF) Chief of Staff and Undersecretary Maria Luwalhati Dorotan Tiuseco said.

Undersecretary Dorotan Tiuseco delivered the remarks at the 2024 High-Level Ministerial Dialogue on the NCQG on Climate Finance on October 9, 2024 in Baku, Azerbaijan.

“From public interventions to private sector action, NCQG calls for a level of commitment that matches the scale of our ambition, while remaining sensitive to common but differentiated responsibilities, respective capabilities, and national circumstances,” she added.

The high-level meeting was a pre-event for the 2024 United Nations Climate Change Conference or Conference of the Parties of the UNFCCC (COP29).

It gathered ministers and deputy ministers around the world to identify and discuss solutions for the progress that must be made at COP29 across all pillars of the Paris Agreement with the NCQG as the centerpiece.

During her intervention, Undersecretary Tiuseco called for simplified access to finance, including through multilateral development banks (MDBs), multilateral funds, and bilateral channels.

In addition, she asserted that the quantum of the NCQG should be significantly supported by public finance, specifically by grants or highly concessional financing.

Furthermore, a five-year time frame with a mandatory periodic assessment and review beginning in the third year to reflect country-driven needs assessment must be adopted.

“We are firm in our stance that climate finance should be new and additional to any ODA that may be provided,” Undersecretary Tiuseco said.

Undersecretary Dorotan Tiuseco likewise co-facilitated the Climate Labs discussion on the NCQG with Swiss Ambassador Felix Wertli.

The session aims to thresh out the remaining issues on the NCQG and reach a consensus, in preparation for COP29. Canada, China, Denmark, France, India, Kazakhstan, the Maldives, Iran, the United Arab Emirates (UAE), Russia, Pakistan, Bolivia, Honduras, and Spain joined the discussions.

During the discussion, some Parties emphasized that the purpose of the NCQG is to help developing countries fulfill their Nationally Determined Contributions (NDCs) and National Adaptation Plans (NAPs), as well as promote the achievement of the Paris Agreement.

As to the contribution, Parties from the developing countries emphasized that the NCQG should be grounded on public sources flowing from developed countries and should be based on the needs and priorities of developing countries.

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.

Finally, the Parties called for transparency in both the contributions and use of the funds to ensure that they are being mobilized to accelerate the countries’ climate goals.

Prior to the high-level dialogue, Undersecretary Tiuseco also represented the Philippines at the Head of Delegations Meeting on NCQG on October 8, 2024.

The COP29 will take place in Baku, Azerbaijan from November 11 to 22, 2024.