Taking place from 11 to 22 November in Azerbaijan, COP29 is being called “the finance COP”, as it is expected to deliver on the financing needs of developing countries, ensuring they have the resources to address climate change impacts, particularly in the area of mitigation, adaptation and loss and damage. The COP is expected to establish a “New Collective Quantified Goal” (NCQG). Aiming to reflect a new global finance target beyond the $100 billion-per-year pledge made by developed nations in 2009, the NCQG has become the focus of climate discussions.

What is less clear, however, is how countries should go about achieving the NCQG. What capacities do they need to adequately mobilize and allocate such resources? In this article, we argue that one fundamental element of the NCQG discussion involves supporting developing countries to access and utilize resources.

And this is where capacity-building comes into play.

Understanding the new collective quantified goal

The NCQG is a direct evolution of the commitments made under the 2009 Copenhagen Accord and the 2015 Paris Agreement on Climate Change. Both agreements recognized the importance of climate finance in helping countries with fewer resources transition to greener economies and build resilience to the inevitable impacts of climate change. In 2009, countries promised to mobilize $100 billion annually by 2020, which should be seen as a floor, not a ceiling, of resource mobilization to support climate action in developing countries.

Four years after the original deadline, this goal has not yet been fully met. The Organization for Economic Co-operation and Development (OECD) revealed that in 2020, around $83.3 billion were mobilized, falling short of the $100 billion target. Additionally, the structure of these funds—whether in the form of loans or grants—has raised questions about the financial burdens placed on developing countries. This shortfall, combined with an urgent need for greater transparency and more equitable access, prompted negotiations to set a more ambitious target: the NCQG.

Expected to be announced in COP29, the NCQG aims to go beyond previous benchmarks, factoring in the scale of financing needed to meet rising global climate ambitions. It should come into effect by 2025 and will serve as a long-term framework that reflects the real costs of addressing climate change, especially for vulnerable nations. Importantly, it is designed to provide predictability and mobilize financial flows consistent with the need for low-carbon and climate-resilient development pathways.

But the work doesn’t end with the announcement of the NCQG; in fact, it is just the start. A major obstacle to effectively utilizing climate finance is the capacity of recipient nations to access and deploy these funds. During the pre-COP negotiations, many developing nations have raised concerns about the complexity and opacity of accessing international climate funds, such as the Green Climate Fund (GCF) or the Global Environment Facility (GEF). The application processes often require extensive documentation, technical expertise, and institutional backing, which poorer countries may lack.

This is where a strong commitment to building capacity among developing countries must be put in place.

The role of capacity building in bridging the implementation gap

As discussions around the NCQG evolve, it is becoming increasingly clear that capacity building—defined as the development of skills, knowledge, and institutional frameworks—is a fundamental enabler for countries to access and use climate finance effectively. For instance, technical support can help governments understand the eligibility criteria for different funds, develop robust project proposals, and engage with donors on an equal footing. In this regard, capacity building is not just about technical skills but also about levelling the playing field between developed and developing nations.

Without adequate capacity, even the most ambitious financial commitments may fail to produce the desired outcomes. Capacity building also extends beyond governmental frameworks. It includes empowering local communities, civil society organizations, and the private sector to participate in climate finance initiatives. A multi-stakeholder approach ensures that the most vulnerable populations, who are often hardest hit by climate change, have a voice in how funds are deployed. In this sense, capacity building is also about creating democratic governance structures that distribute the benefits of climate finance equitably.

Finally, robust capacity building around the access and allocation of resources is also needed among UN staff, especially at the country level. Regional and national offices are increasingly asked to support Member States in designing and implementing their climate strategies, considering the financial resources available to them. To be able to provide such assistance, UN agencies and programmes must be familiar with climate finance-related frameworks.

The road post-COP

As the world prepares for the finalization of the NCQG on climate finance, the importance of capacity building cannot be overstated. The NCQG represents not only an opportunity to scale up financial commitments but also a chance to ensure that these resources are being used effectively to address the climate crisis. By investing in capacity building, the international community can help developing countries overcome barriers to accessing and utilizing climate finance, fostering a more inclusive and equitable global response to climate change.

The NCQG is a critical step toward achieving the long-term goals of the Paris Agreement, but its success hinges on more than just numbers. It requires creating an enabling environment where countries, particularly the most vulnerable, can fully benefit from the financial support available. In this sense, capacity building is not just an accessory to climate finance—it is the key to unlocking its potential.