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GUIDANCE ON AN EQUITABLE FRAMEWORK FOR A DEFINITION OF CLIMATE FINANCE FOR THE NEW COLLECTIVE QUANTIFIED GOAL ON CLIMATE FINANCE (NCQG): NCQG CHEAT SHEET #4

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Image credit: Bodija Market in Oyo, Nigeria, Monday, February 19, 2024. Shutterstock / Tolu Owoeye.</div><div class="w-richtext"><p>‍</p><p>A clear, universally accepted definition of climate finance is crucial to prevent the overstatement of financial contributions and to ensure clarity on what qualifies as climate finance under the <a href="https://unfccc.int/NCQG">New Collective Quantified Goal on Climate Finance</a> (NCQG). </p><p>The agreement of a definition has been highlighted as a critical issue for developing countries, including in their submissions on the issue to the <a href="https://unfccc.int/process-and-meetings/what-is-the-united-nations-framework-convention-on-climate-change">United Nations Framework Convention on Climate Change</a>’s  (UNFCCC) <a href="https://unfccc.int/SCF">Standing Committee on Finance</a> (SCF), and within NCQG discussions, with the <a href="https://www.ldc-climate.org/">Least Developed Countries Group</a> making it clear that not including a definition under the NCQG is a red line, meaning that they will not accept an NCQG without a definition of climate finance.</p><p>If Parties fail to reach agreement on the definition of climate finance, a negative list should instead be provided detailing what should not be counted as climate finance. </p><p>The following cheat sheet provides guidance to Parties on what an equitable framework for a definition of climate finance should include as well as a negative list of transactions that should not be counted as climate finance. </p></div></div></div></div><div><div class="columns-2 w-row"><div class="w-col w-col-6"><div class="read_here_text">Read the full paper here:</div></div><div class="column-2 w-col w-col-6"><div class="pdf_link"><a href="https://cdn.prod.website-files.com/605869242b205050a0579e87/672a07798ef1272bcbf53c3d_Figure%2017-18%20Cheat%20Sheet%204.pdf" target="_blank" class="pdf_link_block w-inline-block"><img src="https://cdn.prod.website-files.com/605869242b20501f9a579e7a/608001c4ab0372e4f777c682_PDF.png" loading="lazy" 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