Presentation from September 2023 CCXG Global Forum

1. Climate Change
Expert Group
New Collective Quantified Goal on
climate finance
Considerations relating to sources of funding
including links to Article 2.1c
___________________
Raphaël Jachnik (Finance for Climate Action, OECD Environment)
Global Forum on the Environment and Climate Change | 12.09.2023
Based on “Draft technical discussion note: Possible approaches and options for selected elements of the New
Collective Quantified Goal on climate finance” Falduto C., Jachnik R., Rocha M., Watson C. (2023, draft)

2. A draft technical note to help inform discussions
during the NCQG sessions of the CCXG Global Forum
Note content
Possible approaches for reflecting
Article 2.1c in the NCQG
Possible options for selected
elements relating to the structure
of the NCQG: sources of funding and
sub-targets
Considerations relating to
transparency and data availability
CCXG Global Forum session
B1: Possible sources of finance for the new
collective quantified goal (NCQG) on
climate finance and links to Article 2.1c
B1: Possible sources of finance for the new
collective quantified goal (NCQG) on
climate finance and links to Article 2.1c
B2: Dimensions of potential sub-targets
for the NCQG on climate finance
B3: Tracking progress towards the NCQG
on climate finance

3. Relationship between Article 2.1c and the NCQG
• NCQG objective refers to accelerating the achievement of Article 2 of the
Paris Agreement, implemented to reflect equity and CBDR–RC
• Article 2.1c applies to diverse financial actors, sources and drivers of both
public and private, domestic, and international financial flows.
• Broad considerations on interaction between Article 2.1c and the NCQG:
o Capital, predominantly available in developed country, needs to be mobilised
towards low-emission, climate resilient investment opportunities in developing
countries in a nationally appropriate manner
o International financial support provided can both pursue a range of sources
of finance and contribute to domestic policies in developing countries that
help trigger effective climate outcomes

4. Examples of possible non-mutually exclusive
approaches for reflecting Article 2.1c in the NCQG
1. Include a high-ambition quantum reference goal reflective of the
scale of efforts that Article 2.1c entails.
2. Explicitly address the role of financial actors and policy makers,
public and private, domestic, and international alike, reflecting the
breadth of Article 2.1c.
3. Reflect considerations relating to equity, just transition, sustainable
development, and poverty alleviation.
4. Include an explicit reassurance on the provision and mobilisation of
climate finance by developed countries.

5. • Financing climate action relies on combination of sources:
o Public finance:
- international (bilateral and multilateral)
- domestic
o Private/commercial private:
- mobilised by public finance
- catalysed by policies and enabling environments
• Underlying mechanisms and instruments to raise and deploy finance
across public and private sources
• NCQG would ideally reflect and balance the UNFCCC status, strengths and
limitations of different financial sources, while recognising their synergies
Sources of funding – general considerations

6. Public
international
Examples of possible options to reflect sources of
finance in the NCQG
Public
domestic
Private
mobilised
Private
catalysed
Quantified,
mandatory
• Collective goal for developed countries to provide public
finance
• Burden-sharing goal for developed countries
Quantified,
voluntary
• Collective goal for other Parties providing support
Qualitative,
aspirational
• Goal that encourages alignment with goals of the Paris
Agreement and/or NCQG
Quantified
• Collective goal for developed countries to mobilise private
finance
• Goal relative to international public climate finance
• Combined goal for developed countries to provide and
mobilise climate finance
Qualitative,
aspirational
• Goal to encourage actors to create the most conducive
environment to catalyse private finance

7. THANK YOU!
Climate Change
Expert Group
http://oe.cd/ccxg
Raphael.JACHNIK@oecd.org
Chiara.FALDUTO@oecd.org
Marcia.ROCHA@oecd.org