NDCs,NCQG,andFinancingtheTransition:UnlockingFlowsforaNet-ZeroFutureOctober2024|Version1.0BriefingNoteNDCs,NCQG,andFinancingtheTransition:UnlockingFlowsforaNet-ZeroFuture2TheEnergyTransitionsCommission(ETC)isaglobalcoalitionofleadersfromacrosstheenergylandscapecommittedtoachievingnet-zeroemissionsbymid-century,inlinewiththeParisclimateobjectiveoflimitingglobalwarmingtowellbelow2°Candideallyto1.5°C.OurCommissionerscomefromarangeoforganisations–energyproducers,energy-intensiveindustries,technologyproviders,financeplayersandenvironmentalNGOs–whichoperateacrossdevelopedanddevelopingcountriesandplaydifferentrolesintheenergytransition.Thisdiversityofviewpointsinformsourwork:ouranalysesaredevelopedwithasystemsperspectivethroughextensiveexchangeswithexpertsandpractitioners.TheETCischairedbyLordAdairTurnerwhoworkswiththeETCteam,ledbyItaKettleborough(Director),andMikeHemsley(DeputyDirector).TheleadauthorofthisbriefingnoteisElizabethLamwithsupportfromHannahAudino.Thisbriefingnote,NDCs,NCQG,andFinancingtheTransition:UnlockingFlowsForaNet-ZeroFuture,aimstoofferclarityonclimatefinancedebatesaheadofCOP29andCOP30wheretwomajorinternationalfinancemechanismsareontheagenda:theNewCollectiveQuantifiedGoalandthenextroundofNationallyDeterminedContributions.ThisworkbuildsonpreviousETCanalysesandreports,particularlythe2023FinancingtheTransitionreportandthe2024CredibleContributions(NDCs)insightsbriefing,andotherexpertresearchsuchasSongweV,SternN,BhattacharyaA(2022),Financeforclimateaction:Scalingupinvestmentforclimateanddevelopment.TheETCteamwouldliketothanktheETCmembers,memberexpertsandtheETC’sbroadernetworkofexternalexpertsfortheiractiveparticipationindevelopingtheanalysisunderpinningthisbriefingnote.Learnmoreat:energy-transitions.orglinkedin.com/company/energy-transitions-commissiontwitter.com/ETC_energyyoutube.com/@ETC_energyTheEnergyTransitionsCommissionishostedbySYSTEMIQLtd.Copyright©2024SYSTEMIQLtd.Allrightsreserved.Briefingdesign:ElliePinney.Coverphoto:MeizhiLang,MadeFromTheSkyandAndersJonUnsplash.CoverdesignadaptedfromGeist*StudioandBurnthebook.NDCs,NCQG,andFinancingtheTransition:UnlockingFlowsforaNet-ZeroFuture3ContentsIntroduction4Section1Climatetargetsandclimatefinance;NDCsandtheNCQG61.1Amechanismtodriveemissionreductions–NationallyDeterminedContributions61.2Definingtheroleofinternationalclimatefinance–theNewCollectiveQuantifiedGoal6Section2Typesoffinanceandestimatesofrequiredquantities92.1Capitalinvestmenttoreduceemissionsandmitigatefurtherglobalwarming112.2Mitigationactivitiesforwhichconcessional/grantpaymentsmayberequired142.3Adaptationandlossanddamage:financingneedsandcurrentflows14Section3Sourcesoffinanceandpoliciesrequiredtounlockgreaterflows163.1Financingcapitalinvestmentformitigation163.2Financingotherpaymentstodrivemitigation203.3Fundingflowsforadaptationandlossanddamage203.4Otherfinancingprogrammesandproposals21Section4KeyprioritiesfortheNCQGandforNDCs224.1AchievingagoodoutcomefromtheNCQGdebate234.2SubmissionofenhancedambitionNDCswithclearfinancerequirementswillactasinvestmentplans24ConclusionIncreasefinancecommitmentsnow,implementationnext25NDCs,NCQG,andFinancingtheTransition:UnlockingFlowsforaNet-ZeroFuture4IntroductionIntroductionVerylargeflowsoffinancewillbeneededtodealwithclimatechange.Hugeinvestmentsareneededfornewassetswhichcanproduceanduseenergyinalowandevent...
