As the 29th United Nations Climate Change Conference, or COP29, approaches, the spotlight is on climate finance — but it’s not just the dollar amount that matters.
Climate finance is a key lever for enhancing global climate action and meeting the goals of the Paris Agreement. Countries are currently negotiating a new collective quantified goal, or NCQG, on climate finance, which aims to significantly increase the volume of finance given by high-income countries to lower-income ones.
Yet not all billions have the same impact. Beyond the quantity of finance, how funds are delivered matters — i.e., the quality. Without addressing issues of quality, such as preferential financing, known as concessionality, access, and impact, climate finance won’t reach those most in need or catalyze transformative change.