1. Climate Change
Expert Group
New Collective Quantified Goal on
climate finance
Considerations relating to sub-targets
___________________
Chiara Falduto (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. Quantitative sub-targets for the NCQG:
An overview
• Nested quantitative (or qualitative) objectives within NCQG.
• Types of sub-targets include: absolute, proportional, minimum floors,
incremental.
• Possible dimensions for sub-targets to be considered include:
• Developing country groupings
• Climate themes
• Public finance instruments

3. Quantitative sub-targets for the NCQG:
Key advantages and challenges
• Counter specific trends in the distribution of climate finance.
• Provide more granular evaluation against set objectives.
• Better reflect developing countries’ aggregate needs and
priorities.
Can help…
• Are applicable mainly to international public climate finance.
• May reduce the flexibility of providers.
• Potentially foster a siloed approach.
• Can be difficult to track progress.
… but come
with some
challenges

4. Possible dimensions for NCQG sub-targets:
Developing country groupings
Advantages Disadvantages
UNFCCC status
(SIDS and LDCs)
- Benefits for the most vulnerable like
SIDS and LDCs.
- May reinforce a division between countries,
not reflecting the full spectrum of
vulnerabilities.
Geographic region
- Promotes regional cooperation and
shared strategies and resources due
to common characteristics.
- Might overlook distinct socio-economic
conditions within regions (e.g. GDP, GNI, ..)
Income group
- Addresses disparities in finance
needs and absorption capabilities.
- May require regular reassessment; risk of
oversimplification.
Level of
vulnerability
- Ensures most at-risk countries
receive resources.
- Defining vulnerability is complex and
requires comprehensive, up-to-date data.
E.g. “USD X bn shall be provided for SIDS and LDCs”
E.g. “Climate finance provided shall be distributed as follows: A% for Africa,
B% for the Americas, C% for Asia, D% for Europe and E% for Oceania.
E.g. “Low-income countries shall receive at a minimum USD Y bn of
climate finance”
E.g. “Countries with a level of vulnerability Y (according to index
XYZ) shall receive Z% of climate finance”

5. Possible dimensions for NCQG sub-targets:
Developing country groupings
Advantages Disadvantages
UNFCCC status
(SIDS and LDCs)
- Benefits for the most vulnerable like
SIDS and LDCs.
- May reinforce a division between countries,
not reflecting the full spectrum of
vulnerabilities.
Geographic region
- Promotes regional cooperation and
shared strategies and resources due
to common characteristics.
- Might overlook distinct socio-economic
conditions within regions (e.g. GDP, GNI, ..)
Income group
- Addresses disparities in finance
needs and absorption capabilities.
- May require regular reassessment; risk of
oversimplification.
Level of
vulnerability
- Ensures most at-risk countries
receive resources.
- Defining vulnerability is complex and
requires comprehensive, up-to-date data.
E.g. “USD X bn shall be provided for SIDS and LDCs”
E.g. “Climate finance provided shall be distributed as follows: A% for Africa,
B% for the Americas, C% for Asia, D% for Europe and E% for Oceania.
E.g. “Low-income countries shall receive at a minimum USD Y bn of
climate finance”
E.g. “Countries with a level of vulnerability Y (according to index
XYZ) shall receive Z% of climate finance”

6. Possible dimensions for NCQG sub-targets:
Climate themes and financial instruments
Climate theme
• Mitigation
• Adaptation
• Cross-cutting
• Loss and Damage
• Capacity-building
• Technology transfer
Public finance instrument
• Grants
• Debt finance
• Equity investments
• Guarantees and insurance

7. Different dimensions of sub-targets can be combined
Income group
Financial instrument
E.g. “X% of public finance
for LICs shall be provided
in the form of grants”
E.g. “A minimum of USD X bn
of finance for adaptation shall
be provided for vulnerable
countries”
Proportional target
Climate theme
Level of vulnerability
Minimum floor
Climate theme
Financial instrument
Absolute target
E.g. “USD X bn shall be
provided for mitigation. Of
these, USD Y bn shall be
equity investments”
• Having more than one level of sub-targets may lead to either synergistic or conflictual
interactions across different levels.
• Key to find the right balance between specificity and implementability.

8. THANK YOU!
Climate Change
Expert Group
http://oe.cd/ccxg
chiara.falduto@oecd.org