Parties must land an ambitious outcome for the new collective quantified goal (NCQG) on climate finance at the 29th Conference of the Parties to the UN Framework Convention on Climate Change (UNFCCC) (COP29). Most of the substantive topics remain unresolved, but transparency arrangements might prove a useful element in finding a way forward on highly contentious issues.

Existing guidelines under the Enhanced Transparency Framework (ETF) cover in detail the reporting of support provided and received, though depending on the final structure and elements included in the NCQG, adjustments may be necessary to capture new components (e.g., loss and damage [L&D], innovative sources of finance, or shifting of fossil fuel subsidies).

The ETF’s modalities, procedures, and guidelines (MPGs) note that information of South-South flows of climate finance ‘should’ be provided in transparency reports, and an ambitious NCQG outcome should encourage Parties to follow through with this mandate while recognizing reporting capacity constraints. Guidance to this effect could be strengthened within the NCQG decision without amending obligations and provisions of the Paris Agreement. Better understanding of South-South cooperation could be an important piece of the larger climate finance puzzle.

Several options for data aggregation and tracking have been discussed in NCQG negotiations, though some Parties have suggested that these might be addressed in a workplan starting after COP29.