1. Transparency arrangements for
the NCQG on climate finance
Karima Oustadi
Ministry of Environment and Energy Security of Italy
12.09.2023
OECD-IEA CCXG Global Forum on the Environment and Climate Change
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2. Decision 9/CMA.3 envisages
“transparency arrangements to track progress
towards achievement of the goal”
>> step forward wrt to 100bn goal
• The ETF has been referred to by most in the technical
dialogues as a fundamental tool/data source for NCQG
transparency arrangement
Context
➢ TED1-4: Parties highlighted the need for enhanced transparency… and
enhanced accounting of climate finance
➢ TED5-6: Parties highlighted the need for provisions to measure and
track the achievement of the NCQG through agreed transparency
arrangements, building on the enhanced transparency framework
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3. but...
• bottom up nature of ETF’s methodological approach
• different capacities ...
➢ inconsistencies
• Specific scope of the ETF (with a degree of „flexibility”)
• Lack of information from the public sector’s perspective...
➢ data gaps
✓ need of specific guidance on transparency
✓ need to start from the ETF but do more: what and how?
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4. Qualitative, quantitative and
transparency aspects are
interdependent
Transparency
arrangements
Sources of
finance
- Public
- Private
- International
- Domestic
Scope
- Mitigation
- Adaptation
- Finance
- LnD
Timeframe
- Review
- Timing and review
ETF
- GST
Structure
- Layers
- Subgoals /
targets
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5. Tracking
layers of
NCQG
ETF
Complementary
sources:
MDBs Joint report,
private sector,
non-state actors,
domestic finance…
Impact
assessment of
climate
finance
ETF: use, impact
and (estimated)
results
Multilateral
outflows’
assessment?
Impact
indicators for
other sources?
Qualitative
monitoring
Policies and
measures
Dynamic nature
of needs and
priorities
Pathways
What?
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6. ETF
Public
finance
Multilateral
Outflows
Private
finance
mobilized
Mobilized private climate
finance
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7. How?
• Agreeing and monitoring layers of NCQG – which might
have different sources and degree of data quality and
availability
• Understanding and improving reliability and quality of
data sources (f.i. those used by OECD, CPI, SCF BA…)
• Review of ETF …
Top-down or bottom-up? ETF bottom up in nature
Depends on:
• ETF timing
• Structure of NCQG
• Review/revision of NCQG
• GST cycle...
How often?
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8. Who?
Reporting
• Individual (country-level) or collective, or both?
• Through an online platform, submissions of data
and studies, independent data extraction
• …
Aggregation exercise for tracking progress
• Within the UNFCCC process: Secretariat,
committees…
• Outside the UNFCCC: agency, IOs…
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9. Challenges
• Data gaps and inconsistencies for both
developed and developing country Parties in the
reporting exercise (including the «should» provision)
• Choice of indicators for impacts and qualitative
aspects
• Aggregation exercise combining different types
of data, sources and measures
• Accountability of non-public actors, private
contributors and financial sector
• Early stage of tracking consistency of finance
flows with the objectives of the PA
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10. Conclusions:
▫ Make best use of the ETF (including the upcoming
review, depending on the timeframe of the NCQG)
▫ Define clearly the scope and the layers of the NCQG
to build a robust transparency arrangement: this will
tell how much additional data sources will be needed
▫ Agree on the components of the transparency
arrangement and identify who can undertake such a
compilation/estimation exercise
▫ Challenges related to monitoring, reporting and data
availability can be addressed through time: the NCQG
might give an important push forward in the capacity
to report and data collection/coverage (including on
broader finance flows and effectiveness and impact)
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