NCQG: What Gets Measured Gets Done

To improve the quality of climate finance provided by the New Collective Quantified Goal (NCQG) we need to be clear on how we are measuring its attainment. For this goal to become a reality at all, several key actions would be needed including: Transparent Monitoring and Reporting.

Transparent Monitoring and Reporting

Mechanisms should be put in place to track the promised funds, ensuring they are delivered on time and used effectively. This would help build confidence and maintain accountability.

There needs to be consistent tracking and documenting of 2 main aspects of climate finance:

1. Delivery of Funds: We are monitoring whether developed countries are delivering the climate finance they promised, including:

? The amount of money delivered

? The timeliness of the delivery (ensuring funds are provided when they are needed)

? Consistency with the agreed target or goal.

2. Effective Use of Funds: We are also tracking how the funds are being used to make sure they are supporting effective climate actions in developing countries. This includes:

? Assessing whether the funds are allocated to projects and programs that make a real impact on climate resilience, adaptation, and mitigation

? Ensuring that the money is used for the intended purposes and not diverted or mismanaged.

How Do We Monitor & Report on the Goal Effectively?

The Global Reporting Initiative (GRI) standards can help monitor and report on Delivery of Funds and Effective Use of Funds. The following GRI standards would be particularly relevant:

1. Delivery of Funds

• GRI 201: Economic Performance: This standard covers disclosures on economic value generated and distributed, which includes aspects like funding provided for specific goals, such as climate finance. Reporting organizations can use GRI 201 to disclose the exact amount of finance provided, the timing, and consistency with any targets or commitments.
• GRI 203: Indirect Economic Impacts: This standard includes disclosures on significant indirect economic impacts, such as funding commitments aimed at achieving climate goals. It can be used to report on whether financial support is provided to beneficiaries (in this case, developing countries) and the impact of this support.

2. Effective Use of Funds

• GRI 302: Energy and GRI 305: Emissions: These standards can be used to track and report the impact of climate finance on specific climate action outcomes, such as energy efficiency improvements and greenhouse gas (GHG) emission reductions. They help demonstrate whether the funds are supporting impactful climate-related activities.
• GRI 304: Biodiversity: If climate finance is used for nature-based solutions or projects affecting ecosystems, this standard can help track whether funds are making a positive impact on biodiversity.
• GRI 413: Local Communities: This standard relates to the social impact of projects funded by climate finance. Reporting under GRI 413 can show whether projects benefit local communities, especially those affected by climate change, and whether the funds are used to support social and environmental resilience.

3. Transparency and Accountability

• GRI 207: Tax: This standard requires organizations to be transparent about tax payments and financial distributions. In the context of climate finance, it helps ensure transparency in fund allocation, promoting accountability in financial flows.
• GRI 207-1: Approach to Tax: Although not directly related to climate finance, this standard includes requirements for organizations to disclose their approach to financial accountability, which can reinforce trust in how climate finance is distributed and spent.

These standards, when used together, create a comprehensive framework for monitoring and reporting on climate finance delivery and impact. This framework can support transparency, accountability, and confidence that funds are both provided and used as intended.

About the Author

Omar Hadjel MCIM is an accomplished marketing consultant, bid support specialist, and certified sustainability advisor. With a career focused on helping organisations in both the private and public sectors secure contracts and enhance their sustainability initiatives, Omar brings a unique blend of strategic insight, environmental awareness, and practical guidance to his clients. His expertise spans bid writing, social value strategy, and sustainability reporting, empowering businesses to align with industry standards and demonstrate their commitment to social and environmental responsibility.

As a member of the Chartered Institute of Marketing and a GRI Certified Sustainability Professional, Omar leverages his knowledge to advise on ESG strategies and public contract readiness, assisting companies in navigating complex procurement landscapes. With a passion for making impactful contributions, Omar also regularly shares insights through thought leadership articles and workshops aimed at enhancing business resilience and fostering sustainable growth.