1.2. CLIMATE AND BIODIVERSITY FINANCIAL TARGETS

1.2.1. Background

The NDICI-Global Europe, Pre-Accession Assistance (IPA III) and Ukraine Facility regulations, as well as the regulation for the Reform and Growth Facility for the Western Balkans, and the Decision on the Overseas Association including Greenland (DOAG), include targets for climate and biodiversity finance for the period 2021-2027. Climate and biodiversity targets are complementary and not mutually exclusive. Where possible, the same programme/action should help to achieve several objectives.

1.2.2. Climate targets

After achieving the USD 100 billion climate finance goal in 2022, the new collective quantified goal (NCQG) to be adopted in Azerbaijan during UNFCCC COP29, will add another layer of political discussion to the reform of the international financial architecture. The NCQG is a new global climate finance goal that the Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA) shall set from a floor of USD 100 billion per year, prior to 2025. This new goal will be set in the context of meaningful mitigation actions and transparency on implementation, considering the needs and priorities of developing countries.

...

Recital 24 of the Council Decision on the Overseas Association, including Greenland (DOAG) states that actions under this programme are expected to contribute 25 % of their overall financial envelope to climate objectives.

1.2.3. Biodiversity targets

The Global Biodiversity Framework sets ambitious financial targets. They address financing from all sources: domestic and international, public and private. Global biodiversity finance from all sources must reach USD 200 billion per year by 2030. As part of the agreement, international biodiversity finance must increase to USD 20 billion a year by 2025, and USD 30 billion by 2030. The agreement calls for the alignment of financial flows and investments with biodiversity objectives. Public and private financial flows must stop destroying nature and must, as far as possible, become nature positive. The targets also provide for the identification, elimination, phasing-out or reform of subsidies that are harmful for biodiversity by at least USD 500 billion per year by 2030.

...

In addition, in her State of the EU address in September 2021, President von der Leyen announced that the EU would double its external funding for biodiversity, in particular for the most vulnerable countries⁽¹⁾. This implies that EUR 7 billion of EU external assistance (2021-2027) should contribute to biodiversity.

1.2.4. Tracking EU support

Annual funding allocated to climate action, combating desertification and biodiversity is subject to an annual tracking system based on the OECD DAC methodology⁽²⁾ using of the Rio markers⁽³⁾, without excluding the use of more precise methodologies where these are available. Aid to environment and support to disaster risk reduction are measured based on the corresponding OECD policy markers.

...