However, on Tuesday, G77 and China rejected the framework, arguing it does not accurately reflect the suggestions that developing countries have made for the new climate finance goal.
Other groups of developing countries, including the Like-Minded Developing Countries (LMDCs), Alliance of Small Island Developing States (AOSIS), Least Developed Countries (LDCs), and the Independent Alliance of Latin America and the Caribbean (AILAC), backed G77 and China in this rejection.
According to the Loss and Damage Collaboration, an international coalition of climate researchers and activists, G77 and China have requested that the co-chairs prepare a new draft text before the next negotiating session.
G77 and China demanded that the new climate finance package meet their needs and priorities, with a minimum quantum of USD 1.3 trillion.
The group said that this amount should support mitigation, adaptation, and loss and damage initiatives, and should be exclusively allocated to developing countries. Developing countries also insist that the new climate finance goal, or NCQG, should prioritize public, grant-based, and concessional finance, as these types of funding are less burdensome for nations already facing financial challenges. Public finance provides a stable support source, while grants and concessional loans (with very low or zero interest) are easier for developing countries to manage.
According to the Delhi-based think tank Centre for Science and Environment, developing countries are also calling for developed countries to provide arrears for the USD 100 billion climate finance goal agreed to in 2009.
At COP15 in 2009, developed countries pledged to mobilize USD 100 billion per year to help developing nations adapt to and combat climate change by 2020. However, this target was only met in 2022, with loans accounting for around 70 percent of the total climate finance provided.
Developing countries are also asking that the NCQG impose no conditions on access to climate finance. They say resources provided under the new goal must be predictable, new and additional, adequate, grant-based, and concessional, and must not create fiscal constraints or debt burdens.
Among developed countries, the European Union has said that the amount of public finance depends on several factors, such as funding sources, contributor base, and the timeframe of the finance goal.
The United States said that the NCQG should be a multilayered global investment goal applicable to all countries. It also argued that developing countries already providing substantial climate finance bilaterally should also contribute.
