1.2.2. Climate targets

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.

For the EU it is important that not only other developed countries contribute to public climate finance, but also other countries that have the capacity to do so. In addition to public finance, we also need to work on how to increase the role of the private sector and innovative sources in climate finance to achieve the Paris Agreement.

The Global Gateway investment agenda can boost climate finance flows and create opportunities through transformative, large-scale projects for partners’ transition in line with the Sustainable Development Goals.

Recital (49) of the NDICI-Global Europe Regulation states that actions under the NDICI-Global Europe are expected to contribute 30 % of its overall financial envelope to climate objectives.

In addition, in her State of the European Union (SOTEU) address in September 2021, President von der Leyen announced an additional EUR 4 billion for climate finance until 2027.

Climate benchmarks have been proposed for some bilateral, regional and thematic programmes.

Recital 25 of the IPA III Regulation indicates that actions under IPA III are expected to contribute 18 % of the overall IPA III financial envelope to climate objectives, with the objective of increasing to 20 % by 2027.

Recital 31 and Art. 28.9 of the Ukraine Facility Regulation indicates that the Facility should contribute, to the extent possible in a war-torn country, at least 20 % of the overall amount corresponding to support under the Ukraine Investment Framework and to investments under the Ukraine Plan to climate change mitigation and adaptation, environmental protection, including biodiversity conservation, and to the green transition. There are no differentiated targets for climate action.

Recital 25 of the ‛Reform and Growth Facility for the Western Balkans’ Regulation indicates that the Facility should contribute to the achievement of the overall target of 30 % of Union budget expenditure supporting climate objectives. At least 37 % of the non-repayable financial support channeled through the Western Balkans Investment Framework (WBIF) should account to climate objectives (Art. 19.4).

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.