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With the dust settling from COP29’s hard-fought negotiations on the New Collective Quantified Goal (NCQG), attention is shifting to how the climate finance goal will be met. The challenge is how to scale up financing for increasingly connected priorities in a challenging landscape of debt stress<\/a> and cuts in official development assistance. <\/a><\/p>\n The recent Financing for Development (FfD4) conference in Seville offers important clues about how to continue the political momentum on the road to COP30 in Bel\u00e9m. It is the first time that the FfD process has meaningfully connected to relevant UNFCCC decisions. FfD4\u2019s outcome document, the Seville Commitment<\/a>, goes beyond the previous FfD outcome (the Addis Ababa Action Agenda<\/a>) to meaningfully integrate climate finance within the broader development finance framework rather than treating it as a separate track.<\/p>\n Here are the five things that FfD4 achieved for climate finance:<\/p>\n The Seville Commitment features several connections to the multilateral processes for climate, biodiversity and desertification. More specifically for climate finance, it calls for ‚the provision and mobilisation of means of implementation in line with the objectives and respective commitments under the UNFCCC and Paris Agreement<\/em>\u2019. This includes the contentious NCQG decision.<\/p>\n This language matters. By setting the climate finance goal within the broader financing for development framework, the Commitment signals recognition that providing and mobilising financial resources to at least $300 billion by 2035 \u2013 and the scaling up to $1.3 trillion from all sources \u2013 will be linked to the discussions on international financial architecture reform.<\/p>\n The outcome document also calls for \u2018support for the implementation of nationally determined contributions and national adaptation plans<\/em>.\u2019 Countries\u2019 updated nationally determined contributions (NDCs), or NDCs 3.0, are due this year, and are expected to be more ambitious than the previous round, as prescribed in the Paris Agreement\u2019s ratchet mechanism. The UNFCCC\u2019s Standing Committee on Finance has previously estimated that developing countries\u2019 needs in NDCs amount to US$455\u2013584 billion per year by 2030.<\/a> With NDCs 3.0 rolling in, it is possible that the estimated costs will be higher. There is a well-documented gap especially for adaptation finance needs, estimated at US$187-359 each year,<\/a> which informed the Doubling of Adaptation Finance pledge made at COP21 that will expire this year.<\/p>\n In pursuit of the \u2018scaling up\u2019 to $1.3 trillion, the COP29 and COP30 Presidencies are developing the Baku to Bel\u00e9m Roadmap. As Brazil’s COP30 Presidency has outlined to its Circle of Finance Ministers<\/a>, five priority areas will shape the report expected by COP30 in Bel\u00e9m: MDB reform, expanding concessional finance and climate funds, country platforms to boost domestic capacity, innovative financial instruments for private capital mobilisation and strengthening regulatory frameworks.<\/p>\n Some of these key issues include whether public finance should de-risk and mobilise private investment or provide grants and concessional funding for climate actions with public good features or uncertain returns, such as adaptation. Navigating fiscal constraints will be critical to scaling up climate finance.<\/p>\nCalling for resources for the implementation of UNFCCC decisions<\/h2>\n
Supporting the implementation of NDCs and NAPs<\/h2>\n
\u2018Looking forward\u2019 to the launch of the Baku to Bel\u00e9m Roadmap by COP30<\/h2>\n
Stressing the importance of transparency in climate finance reporting<\/h2>\n