COP29: No question of becoming donors under NCQG, say developing countries

Baku: With several proposals to expand contributor base being discussed in negotiating rooms, developing countries have clarified that expanding the donor base to include developing countries would violate the provisions of the Paris Agreement.

It’s important to understand what developing countries, especially China and others, may contribute to South-South solidarity is outside the ambit of the New Collective Quantified Goal (NCQG). “It is voluntary and there is no obligation on developing country parties to contribute. We are here to discuss NCQG under the Paris Agreement. The Agreement clearly states that money will flow from developed to developing countries. We are not here to renegotiate that,” a developing country negotiator said on Wednesday morning.

Plus, negotiators said there was an effort to deflect responsibility. “They are trying to deflect responsibility from paying up climate finance which has not been fulfilled since 2009. Voluntary contributions are outside this climate finance obligation,” another negotiator said.

On the talks of including China as donor and India not requiring climate finance support anymore, a developing country observer said:

“There is no debate over whether India is a developing country or not. Please look at India’s per capita income and emissions. They are several times lower than the world average. In fact, there is no ask also for India to join the contributor base. The income needs to understand based on size and per capita share.”

India has a per capita GDP of USD 2,485 compared to world average of USD 13,138. India is the 3rd largest GHG emitter globally but its per capita emissions are 2.9 tCO2e/capita compared to 8.3 tCO2e/capita for G20.

An observer, meanwhile, said: “There is a proposal by the US on expanding contributor base that is being discussed presently in negotiating rooms.”

“While developed countries recognize their responsibility to lead, they argue that other countries with the ability to provide climate finance — some of whom already invest in climate action in developing nations— should also transparently contribute to a new goal, due to their relative wealth and emissions profiles,” wrote Melanie Robinson, global director, climate, economics and finance, World Resources Institute, on Wednesday.

“As mentioned earlier, one way for the new goal to include new contributors would be to count all financial flows from the MDBs rather than just those from developed countries. But regardless of the approach taken, it is important to developing countries that contributing to a new climate finance goal would not change their development status.”

During the stock-take plenary on Wednesday, the Like-Minded Developing Countries said the USD 200 to 300 billion NCQG quantum being discussed informally and expansion of contributor base is a super redline for them.

“We are also hearing in the corridors figures of USD 200 billion being offered by our partners for the NCQG, which includes contributions from the MDBs. We are unable to fathom this. USD 200 billion to step up ambition in developing countries? USD 200 billion? This is unfathomable. And there too, these meager figures are being tied to contributor base discussions. Developed countries whose legal obligation is to provide finance continue to shift the responsibility to developing countries. And the NCQG cannot attempt to change this legal obligation of developed countries. We will not accept a renegotiation of the Paris Agreement. This is a super red line,” said Diego Pacheco, spokesperson of LMDC.

Three proposals on quantum of NCQG have been discussed formally in negotiations. But it’s not clear what is the break-up of sources of finance for these proposals.

“We’ve heard three different proposals for the provided quantum of 900 billion, 600 billion and 440 billion. Many mentioned that it’s important that whatever figure we land on, it be both ambitious and achievable...Many countries say that they need to be both provided and mobilised together under one quantum, not separate targets.

And we heard that the goal has the same scope as the US $100 billion goal from a wide range of sources and instruments from some parties. Parties also made the point that resolving the contributor base is important to that conversation,” Chris Bowen of Australia informed the COP29 Presidency during the stock-take on Wednesday.