SCF/2024/35/4, Annex I (unedited)

Unedited version

Report of the Standing Committee on Finance

Addendum

Second report on the determination of the needs of developing country

Parties related to implementing the Convention and the Paris
Agreement

Summary
At its 35th meeting, the Standing Committee on Finance concluded its work on the
technical report on the second report on the determination of the needs of developing country
Parties related to implementing the Convention and the Paris Agreement and its executive
summary, which are contained in this document.
SCF/2024/35/4, Annex I (unedited)

Abbreviations and acronyms

Adcom adaptation communication
AR Assessment Report of the Intergovernmental Panel on Climate Change
BUR biennial update report
CMA Conference of the Parties serving as the meeting of the Parties to the Paris
Agreement
COP Conference of the Parties
IEA International Energy Agency
IPCC Intergovernmental Panel on Climate Change
LDC least developed country
LEDS low-emission development strategy(ies)
NAP national adaptation plan
NAPA national adaptation programme of action
NC national communication
NDC nationally determined contribution
NDR report on the determination of the needs of developing country Parties
related to implementing the Convention and the Paris Agreement
SCF Standing Committee on Finance
SIDS small island developing State(s)
TAP technology action plan
TNA technology needs assessment
UNEP United Nations Environment Programme

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I. Introduction

A. Context and mandates

1. The second NDR prepared by the SCF provides an updated overview of the needs of
developing country Parties based on available information in reports at the national, regional
and global level. The second NDR includes the following elements related to determining
the needs of developing country Parties:
(a) Information compiled from reports at the national, regional and global level,
broken down by costed and non-costed needs, time frame, theme and sector, geography, and
means of implementation;
(b) Information on processes and approaches used;
(c) Information on the methodologies and underlying assumptions used;
(d) Discussion of related gaps, challenges and opportunities.
2. COP 24 requested the SCF to prepare, every four years, a report on the determination
of the needs of developing country Parties related to implementing the Convention and the
Paris Agreement for consideration by the COP, starting at COP 26, and by the CMA, starting
at CMA 3.1 Following the first NDR2 in 2021, the COP and the CMA provided guidance in
the context of preparing the second NDR, which included continuing to reach out to
developing country Parties and their stakeholders when generating data and information on
needs, and to consider including available data and information relevant to implementing the
United Arab Emirates Framework for Global Climate Resilience.3
3. The second NDR comprises this executive summary, prepared by the SCF, and a
technical report prepared by experts under the guidance of the SCF drawing on data and
information from a range of sources. The technical report was subject to extensive
stakeholder input and expert review but remains a product of the external experts.

B. Scope and approach

4. The second NDR provides an updated overview of the needs of developing country
Parties4 to address climate change in accordance with the Convention and the Paris
Agreement based on information and data available at the national, regional and global level
as at 30 June 2024.
5. The main sources of information are the reports submitted by developing countries as
part of the processes under the Convention and the Paris Agreement, such as Adcoms, BURs,
LEDS, NAPs, NCs, NDCs, TAPs and TNAs. The latest submitted report of each type by each
Party as at 30 June 2024 is included in the overview of needs, amounting to a total of 754
national level reports from 154 Parties, compared with 563 national reports considered in the
first NDR. Previous reports of the same report type submitted by the same Party are not
considered in order to avoid double-counting. The second NDR uses the same approach
applied in the first NDR to capture needs as explicitly expressed by developing country
Parties through specific means of implementation (financial, capacity-building or technology
development and transfer) or a specific activity to address the need. Where necessary, the

1 Decision 4/CP.24, para. 13.

2 UNFCCC Standing Committee on Finance. 2021. First report on the determination of the needs of
developing country Parties related to implementing the Convention and the Paris Agreement. Bonn:
UNFCCC. Available at https://unfccc.int/topics/climate-finance/workstreams/determination-of-the-
needs-of-developing-country-parties/first-report-on-the-determination-of-the-needs-of-developing-
country-parties-related-to-implementing.
3 Decisions 5/CP.26, para. 19, and 9/CMA.5, para. 2.
4 For the purpose of the second NDR, various data sources are used to illustrate needs of developing
country Parties, without prejudice to the meaning of this term in the context of the Convention and the
Paris Agreement, including but not limited to Parties not included in Annex I to the Convention and
other classifications used in regional and global reports.

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technical team consisting of external experts and secretariat staff who developed drafts of the
report harmonized raw data and information against the data collection framework outlined
in annex B to the technical report. Due consideration was given to accurately reflecting how
Parties chose to report specific needs.
6. In following the same methodological approach applied in the first NDR, the second
NDR does not aggregate needs across types of report submitted by the same Party,
notwithstanding that some Parties cross-reference their estimates of needs and of costed
needs across several reports. As a result, the needs reported by Parties across different report
types have overlaps and therefore should not be aggregated.
7. The overview of the needs expressed in national reports is complemented by national
level responses to a call for evidence, summary analyses of other national level reports
prepared by multilateral development banks and regional and global reports that provide
information on the needs of developing countries based on models and estimates.5
8. The technical work comprised a literature review and a set of outreach activities.
Three engagement webinars for regional stakeholders were held in April–May 2024, and the
call for evidence received 10 submissions.6

C. Challenges and limitations

9. There are a number of challenges and limitations faced in the preparation of this report
associated with collecting data and information on needs as reported by developing country
Parties in their national reports under the Convention and the Paris Agreement. Some key
challenges and limitations are:
(a) Data interpretation: Information on needs was not reported in standardized
formats. While the guidelines for preparing some report types such as BURs and NCs include
dedicated chapters on the needs for means of implementation, other report types, such as
Adcoms, LEDs, NAPs, NDCs do not have dedicated sections as part of their guidelines and
therefore that information is not required to be submitted by developing country Parties.
According to the methodology of the report, the analysis relies on how each source of
information explicitly expresses the needs of developing countries, which presents challenges
for the interpretation of the information reported. For these report types, some developing
country Parties add a dedicated section on needs, others include general statements or tabular
information on needs interspersed throughout the report. However, the non-standardized
formats make it challenging to collect and interpret data and information. Furthermore, the
approach for data collection involved analysing explicit statements of need, which can be
challenging to identify in different reports. In addition, how needs change over time and if a
need reported in the latest submitted report superseded or was in addition to needs reported
in the previous report submitted by the same Party is often not disclosed. For this reason, the
approach applied in the second NDR, as in the first NDR, captures the latest needs expressed
by a given Party in each type of report;
(b) Data gaps: A significant gap in information on costed needs persists relative
to the number of needs expressed, by theme and by sector. Furthermore, gaps in information
exist on the processes and approaches used in determining needs, as well as the
methodologies and underlying assumptions used. Developing country Parties are not required
to submit information on needs, and the existence of data gaps may be due to a lack of
available data, tools and capacity;
(c) Presentation of data: Measuring needs by the number of times they have been
expressed does not capture the scale of each expression (e.g. at an activity, sector or thematic

5 National level inputs were submitted by two countries in response to the call for evidence by the SCF,
although the data presented within these submissions were not integrated into the analysis of national
reports. These are analysed separately in chapter 2.2 of the technical report. For more information on
the submissions see Link.
6 Available at https://unfccc.int/topics/climate-finance/resources/standing-committee-on-finance-info-
repository#Report-on-the-determination-of-the-needs-of-developing-country-Parties-related-to-
implementing-the-Convention-and-the-Paris-Agreement

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level). For costed needs, challenges relate to aggregating information without adjusting for
inflation or net present value and differentiating between total and incremental costs.
10. The report itself does not determine the needs of developing country Parties but rather
provides a snapshot of the types of needs identified in various sources of information and
processes. Given the significant gaps and limitations in data and information availability and
the wide range of needs assessment methodologies with different levels of granularity
applied, the report does not represent a comprehensive and exhaustive presentation of needs,
but rather captures the needs as reported by developing country Parties in the sources of
information this report considers.

II. Key findings

A. Overview of the information and data on needs of developing country

Parties from national reports

1. Needs expressed and costed needs

11. As noted in the first NDR, the needs articulated by developing country Parties
encompass a range of financial, technology development and transfer, and capacity-building
needs.7 The level of detail in the information provided varies in terms of the description of
needs and their associated costs, if specified. While some Parties expressed costed needs at
the scale of national climate action plans, others communicated needs at the activity or sector
level. Figure 1 provides an overview of the articulation of the needs of developing country
Parties, including costed needs, across the eight types of reports reviewed in the second NDR.

7 A total of 53 reports reviewed did not express needs. In addition, as no updated or new NAPAs have
been published since the first NDR, the information on 51 NAPAs reported therein is not repeated in
the second NDR (refer to the first NDR for information on NAPAs).

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Figure 1: Overview of needs, including costed needs, identified by developing country

Parties, by type of national report

INSERT NEW FIGURE 1 HERE

(Note: Figure will be designed in similar style as first NDR figure 1.)
12. The ranges in the amounts of costed needs identified by developing country Parties
reflect either how several Parties reported on low- to high-range estimates at the activity,
sector or thematic level on an annual or a cumulative basis, or how Parties included different
estimates for sector or thematic needs that sum to a lower amount than that provided for
overall investment needs. As at 30 June 2024:
(a) NDCs from 142 Parties contain a total of 5,760 needs. Of these, 2,753 (48 per
cent) were costed needs reported by 98 Parties, amounting to USD 5.036–6.876 trillion.
Given these needs represent the largest number of Parties reporting costed needs, they are the
most representative of this metric. It is understood that the costed needs presented in NDCs
do not reflect the entirety of needs across developing country Parties and regions (see paras.
24 and 26 below). The first NDR identified costed needs from 78 Parties amounting to USD
5.8–5.9 trillion up until 2030. Accounting for a similar time frame out to 2030, for
comparative purposes, the costed needs from the latest NDCs amount to USD 5.012–6.852
trillion cumulatively out to 2030. As in the first NDR, the starting points for costed needs out
to 2030 in NDCs vary significantly with some indicating a 2015–2030 timeframe, and others
a 2020-2030 timeframe. Therefore, an annualized cost estimate across different time frames
ending by 2030 of implementing these costed needs by 98 countries are in the range of USD
455–584 billion per year8;
(b) Adcoms by 43 Parties include a total of 1,593 needs. Of these, 673 (42 per
cent) are costed needs reported by 29 Parties, cumulatively amounting to USD 1.77–2.4
trillion;

8 Further information is available in section 2.1 of the technical report.

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(c) BURs contain 3,097 needs identified by 96 Parties, and 835 (27 per cent) are
costed needs reported by 55 Parties, with a cumulative estimated cost of USD 30–31.78
trillion;
(d) LEDS include 1,538 needs identified by 28 Parties; of these needs, 745 (48 per
cent) are costed needs reported by 19 Parties, with a cumulative estimated cost of USD 2.34–
2.48 trillion;
(e) NAPs contain 4,317 needs identified by 52 Parties. Among these needs, 1,577
(37 per cent) are costed needs reported by 35 Parties, cumulatively amounting to USD 842–
844 billion;
(f) NCs contain the highest number of identified needs, with 7,863 needs
identified by 145 Parties. Of these needs, 1,058 (13 per cent) are costed needs provided by
57 Parties, cumulatively amounting to USD 28.32–28.67 trillion;
(g) TAPs contain 2,765 needs identified by 47 Parties. Among these needs, 1,708
(62 per cent) are costed needs reported by 39 Parties, cumulatively totalling USD 45 billion;
(h) TNAs contain 2,760 needs identified by 97 Parties. Among these needs, 516
(19 per cent) are costed needs reported by 47 Parties, with a cumulative estimated cost of
USD 799–804 billion.
13. The time frame of identified needs can differ, varying within 2006 to 2070, owing
partly to the different purposes of report types and partly to how Parties chose to report time
frames in their reporting based on their available data and national plans. For example, it is
understood that LEDS focus on longer time frames, most NDCs have five- or ten-year time
frames, and BURs and NCs often feature needs in the short-term. However, Parties also
report a mix of ten- and 30-year time frames in LEDs and 10- to 15-year time frames in
NDCs.
14. Differences in the costed estimates compared with in the first NDR reflect updated
NDCs including changes in reporting scope and information on ranges. A total of 23
developing country Parties reported costed estimates for the first time in updated NDCs,
while 28 reported increased estimates compared with in their previous NDCs. In addition, 4
developing country Parties did not report cost estimates in their latest NDC, and 17 reported
decreases in costed estimates compared with in their previous NDC owing to narrowing the
scope of the estimates from overall investment to international support specifically or to more
detailed costing exercises.
15. Of the total number of costed needs identified by 98 Parties across the NDCs, USD 2.4
trillion is costed for conditional actions, representing 48 per cent of the total, and USD 882
billion is costed for unconditional actions, representing 18 per cent (figure 2). Thirty-five per
cent of the costed needs, equivalent to USD 1.8 trillion, do not specify whether they are
conditional or unconditional. In addition, some Parties provided information on the
anticipated sources of finance for meeting their NDCs, though detailed information in this
regard is limited. A total of 44 per cent stated the needs may be financed through both
international and domestic, and public and private sources. International sources are specified
by 8 per cent of the costs and domestic sources by 1 per cent. However, the largest segment
(47 per cent) does not specify any particular source of finance.

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SCF/2024/35/4, Annex I (unedited)

Figure 2: Costed needs identified in nationally determined contributions, by conditionality and source of finance

Note: Data represent the low-end range of costed needs in NDCs identified by developing country Parties as at 30 June 2024.

2. Sectoral distribution
16. The thematic balance of needs varies depending on the type of report considered. In a
number of report types (Adcoms, NAPs, NCs, NDCs, TAPs and TNAs) adaptation needs
were identified more often than mitigation needs. In others (BURs and LEDS) mitigation
needs were identified more often (Figure 3).
17. The key sectors with the highest number of adaptation needs across different report
types are agriculture and food; forestry, ecosystems, and biodiversity; water supply; health
and sanitation; disaster management; and coastal zones. A large number of adaptation needs
are also cross-cutting across sectors.9
18. Regarding mitigation needs, the energy sector is generally the key sector, with other
top mitigation sectors including forestry, ecosystems, and biodiversity; waste management;
transportation; and agriculture and food.
19. In addition to adaptation and mitigation needs, other needs were expressed including
on averting, minimizing and addressing loss and damage. 10 Regarding averting, minimizing
and addressing loss and damage, most of the reported needs are cross-cutting across sectors
or focus on agriculture and food, forest, ecosystem and biodiversity; disaster risk
management; water supply; and coastal zones. These needs are reported by 29 Parties across
report types and therefore may not comprehensively reflect the needs for loss and damage.
20. A total of 79 per cent of the costed needs in NDCs are related to mitigation, with
adaptation needs accounting for 16 per cent. Other costed needs expressed include cross-
cutting measures and averting, minimizing and addressing loss and damage (5 per cent and
less than 1 per cent, respectively). Adcoms, NAPs and TNAs allocate a higher proportion of
costed finance needs to adaptation initiatives, whereas BURs, LEDS, NCs and TAPs allocate
a higher proportion of costed finance needs to mitigation initiatives.
Figure 3: Thematic distribution of expressed needs by type of national report

9 Additional information on adaptation needs, particularly in relation to the United Arab Emirates
Framework for Global Climate Resilience, is available chapter 2.1 of the technical report.
10 This is without prejudice to any positions of Parties in current or future negotiations, or any
understandings on current or future decisions under the Convention and the Paris Agreement.

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SCF/2024/35/4, Annex 1 (unedited)

INSERT NEW FIGURE 3 HERE

(Note: Graph will be designed to reflect agreement.)

21. The energy sector accounts for a significant proportion of costed mitigation needs
across reports, including 60 per cent in NDCs, 56 per cent in BURs, 74 per cent in LEDS, 53
per cent in NCs, 88 per cent in TAPs and 80 per cent in NAPs. The exception is in TNAs,
where the agriculture and food sector accounts for the largest proportion of costed mitigation
needs. Other key sectors across reports include transportation (28 per cent in BURs, 11 per
cent in LEDS, 29 per cent in NCs and 9 per cent in NDCs) and buildings (16 per cent in
BURs and 17 per cent in NCs); heavy industry, and agriculture and food also feature.
22. Sectors where the most signification proportions of costed adaptation needs are
focused differ by types of report. For NAPs, almost half of costed needs are cross-cutting
across sectors, whereas the infrastructure and building, agriculture and food, and energy
sectors account for 16, 9 and 8 per cent of costed adaptation needs respectively. Adcoms
report significant costs in transportation (35 per cent), water supply (21 per cent) and disaster
risk management (18 per cent). A total of 25 per cent of costed adaptation needs in NDCs are
in agriculture and food sectors, 17 per cent are in health and 15 per cent are in water supply.
TAPs and TNAs focus on agriculture and food (62 and 83 per cent respectively) and water
supply (17 per cent each).
23. In addition to costed needs for adaptation and mitigation, other costed needs expressed
include activities to avert, minimize and address loss and damage. A sectoral breakdown of
costed needs on averting, minimizing and addressing loss and damage needs is available only
for two NCs and five NDCs. In NCs, all costed loss and damage needs are cross-cutting. In
NDCs, costed loss and damage needs are primarily in transportation (21 per cent); energy
(17 per cent); forestry, ecosystem and biodiversity (16 per cent); agriculture and food (14 per
cent); health and sanitation (12 per cent); and coastal zones (10 per cent). Costed loss and
damage needs in the water supply sector account for 6 per cent, and those in the infrastructure
and building sector account for 3 per cent.

3. Geographical distribution
24. As also noted in the first NDR, data and information on needs expressed in national
reports are dynamically changing and therefore may be incomplete. Although the number of
needs and costed needs communicated in national reports is lower for some geographical
regions than for others, a lower number of needs reported does not mean those regions have
fewer needs. Rather, this may be due to lack of available data, tools and capacity for
determining and costing needs. Therefore, the number of needs and costed needs compiled

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from national reports available at the time of preparation of this report should not be used to
draw comparisons of the actual needs across regions.
25. African countries reported the highest number of expressed needs across most report
types, including Adcoms, BURs, NCs, NDCs and TNAs, while Asian countries had the
highest number of expressed needs in LEDS, NAPs and TAPs (Error! Reference source
not found.).

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Figure 4: Geographical distribution of costed needs by type of national report (percentage of total costs)

Note: One cell represents information from a single Party in the region. (Graphics will be improved in design phase)
26. The majority of costed needs across report types are in Asia, apart from LEDS where
costed needs in Africa are predominant. By comparison costed needs identified in NDCs
from 98 Parties are predominantly reported by two geographic regions including by Asia
representing 65 per cent and Africa 33 per cent (Figure 4).
27. In some report types, costed needs are highly concentrated in the reports of just a few
Parties. This can be a result of different population sizes, economic drivers, longer time
frames of needs expressed, other national circumstances or different methodological
approaches including due to lack of reporting requirements in that regard. With USD 26.8
trillion in costed needs, one developing country Party represents 89 per cent of the costed
needs identified in BURs and 95 per cent in NCs but covers a time frame from 2021 to 2060.
The remaining 11 per cent (USD 3.3 trillion) of the costed needs identified in BURs and 5
per cent (USD 1.5 trillion) in NCs cover 54 and 56 Parties respectively. Another developing
country Party represents 69 per cent (USD 1.6 trillion) of costed needs identified in LEDS
and spans a time frame up until 2050. The remaining 31 per cent (USD 715 billion) of the
costed needs identified cover 18 Parties. Two developing country Parties represent 68 per
cent (USD 572 billion) of costed needs in NAPs, and three Parties represent 85 per cent (USD
1.5 trillion) in Adcoms. The remaining 32 and 15 per cent (USD 271 billion and USD 268
billion) cover 33 and 26 Parties respectively. Two Parties represent 77 per cent (USD 615
billion) of the costed needs identified in TNAs and another two represent 50 per cent (USD
23 billion) in TAPs. The remaining amounts (USD 184 billion and USD 23 billion) are
covered by 45 and 37 Parties respectively. Costed needs in NDCs are more evenly distributed,
where three Parties represent 47 per cent of the estimated costed needs (USD 2.4 trillion) and
the remaining 53 per cent (USD 2.7 trillion) is covered by 95 Parties.
28. An overview of reported needs in NDCs by region is provided below:
(a) The largest number of needs and costed needs is reported in Africa. A total of
53 African countries reported 2,981 needs, with nearly 47 per cent focused on adaptation, 46
per cent on mitigation, and around 7 per cent on cross-cutting sectors. Of these, 1,692 needs
from 51 countries have been costed, amounting to USD 1.6–1.9 trillion. The costed needs are
significantly higher for mitigation (USD 970–979 billion) than for adaptation (USD 430–693
billion). Other costed needs include cross-cutting measures and averting, minimizing and
addressing loss and damage (USD 214 billion and USD 3 billion respectively). A total of 17
countries in the Eastern Africa subregion account for most of the costed needs (USD 614–
615 billion), followed by Northern Africa (USD 351 billion) and Western Africa (USD 332–
336 billion). Southern and Middle Africa comprise the remainder of the costed needs (USD
205–214 billion and USD 114–371 billion respectively). Egypt, Ethiopia and Nigeria
reported the highest costed needs among African countries;
(b) In Asia, 38 countries reported 1,046 needs, with 55 per cent focused on
mitigation, 38 per cent on adaptation and 7 per cent on cross-cutting sectors. A total of 374
needs from 20 countries have been costed, amounting to USD 3.3–4.9 trillion, making the
costed needs in Asia the highest among all regions. The costed needs for mitigation are
particularly high (USD 2.9 trillion) compared with adaptation (USD 325–431 billion). A
substantial portion of costed needs (USD 46 billion to 1.5 trillion) are cross-cutting. The
Southern Asia subregion has the highest costed needs in Asia, ranging from USD 2.5 million
to USD 4 trillion, from seven countries. The costed needs in South-Eastern Asia accounted
for USD 629–665 billion from five countries, followed by USD 147 billion from four
countries in Western Asia and USD 12 billion from one country in Eastern Asia. The high
costed needs in the Asia region are largely driven by significant costs reported by India,
Indonesia, Iran (Islamic Republic of) and Pakistan;
(c) In Europe, six countries reported 261 needs, with 75 per cent focused on
adaptation and 21 per cent on mitigation. A total of 95 needs from the Republic of Moldova
have been costed, amounting to USD 9 billion, of which USD 5 billion is allocated to
mitigation and USD 4 billion to adaptation;
(d) In Latin America and the Caribbean, 29 countries reported 958 needs, with
43 per cent focused on mitigation, 41 per cent on adaptation and 11 per cent on cross-cutting
sectors. A total of 334 needs from 17 countries have been costed, amounting to USD 90
billion. Costed needs in the region are notably higher for mitigation (USD 43 billion) than
 FCCC/CP/2024/X−FCCC/PA/CMA/2024/X

for adaptation (USD 28 billion). Other costed needs include cross-cutting measures and
averting, minimizing and addressing loss and damage (USD 14 billion and USD 5 billion
respectively. The Caribbean subregion accounts for USD 65 billion of the costed needs from
10 countries, followed by USD 22 billion from four countries in Central America and USD
2.4 billion from three countries in South America. Cuba, the Dominican Republic, Haiti and
Panama reported the highest costed needs among countries in the region;
(e) In Oceania, 14 countries reported 514 needs, with nearly 50 per cent focused
on adaptation, 39 per cent on mitigation and 10 per cent on cross-cutting sectors. A total of
258 needs from nine countries have been costed, amounting to USD 8 billion. The costed
needs are balanced between mitigation and adaptation (USD 4 billion each). The Melanesia
subregion reported the highest costs, amounting to USD 8 billion from four countries,
whereas Micronesia reported USD 1 billion from one country. One country in Polynesia
reported costed needs amounting to USD 10 million. Fiji, Papua New Guinea, Solomon
Islands and Vanuatu reported the highest costed needs in the region;
29. The LDCs reported 2,574 needs in their latest NDCs, with nearly 50 per cent focused
on adaptation, 45 per cent on mitigation and 5 per cent on cross-cutting needs. The
implementation costs for 1,467 costed needs in 41 LDCs amount to USD 1 trillion, with
USD 783–788 billion for mitigation and USD 239–248 billion for adaptation. Other costed
needs include cross-cutting measures and averting, minimizing and addressing loss and
damage (USD 34 billion and USD 8 billion respectively). The LDCs in Africa represent 76
per cent of the costed needs. However, LDCs in Asia, with 22 per cent of the costed needs
host the highest individual LDCs reporting the most needs in Bangladesh and Ethiopia;
30. SIDS reported 1,430 needs, with 45 per cent focused on adaptation, 42 per cent on
mitigation. Other needs expressed include cross-cutting measures and averting, minimizing
and addressing loss and damage (9 per cent and 3 per cent, respectively. Of these, 668 needs
from 28 SIDS have been costed, amounting to USD 89 billion, with USD 42 billion for
mitigation and USD 36 billion for adaptation. Other costed needs include cross-cutting
measures and averting, minimizing and addressing loss and damage (USD 5 billion and USD
5 billion respectively). SIDS in Latin America and the Caribbean have reported the highest
number of needs and costed needs, at approximately 77 per cent of all SIDS reporting needs.
African SIDS accounted for 14 per cent, and Oceania SIDS 9 per cent. Cuba, the Dominican
Republic and Haiti reported the most needs of all SIDS at the country level.

4. Distribution by means of implementation

31. Finance is the most common means of implementation across most report types,
constituting 33 per cent of needs reported in Adcoms, 24 per cent in BURs, 41 per cent in
LEDS, and 30 per cent in NDCs. TAPs and TNAs focus mainly on technology development
and transfer needs, accounting for 39 and 55 per cent of the needs reported respectively.
Capacity-building is the primary means of implementation in NAPs and TAPs, with 31 and
26 per cent of the total needs for each report type respectively. In NDCs, 237 of the 648
capacity-building needs reported have been costed, totalling USD 10.29 billion. Similarly,
140 of the 485 technology development and transfer needs reported have been costed in
NDCs, amounting to USD 777.18 billion.

5. Other areas of need expressed

32. In their NDCs, 81 per cent of developing country Parties provided information related
to gender and 34 per cent affirmed they will take gender into account in implementing them.
For instance, Ghana’s NDC includes an assessment of the gender-responsiveness of all policy
actions, including those relating to mitigation and adaptation. Uruguay, in its NDC, included
a list of cross-cutting adaptation measures categorized by their potential to address gender
inequalities, guided by its 2021 gender and climate change action plan. Thailand emphasized
the need for support in developing its next NDC, particularly in assessing gender sensitivity
as a critical aspect of policy implementation.
33. A total of 40 per cent of developing country Parties indicated an increased focus on
the role of local communities and Indigenous Peoples in national matters, taking into account
the rights of Indigenous Peoples at the national level, which include enabling legal and

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consultative arrangements for protecting their rights. For example, the priority
recommendations listed in Sudan’s NAP include assessing and documenting existing
Indigenous knowledge and developing options for overcoming climate vulnerabilities.
34. With respect to energy poverty as it relates to sustainable development, many Parties
highlighted multiple co-benefits in their mitigation needs, such as using renewable energy,
improving energy efficiency to enhance energy security and using renewable energy in rural
areas to provide increased access to sustainable energy. Those Parties with economic
diversification plans or actions focused on high-emitting sectors identified the co-benefits of
enhanced air quality and energy security by addressing needs for deploying renewable energy
technologies, adopting procedures for carbon dioxide capture and storage in the oil and gas
industry, improving energy efficiency in the industry and buildings sectors, and
implementing fuel switch in the transport sector. In addition, many Parties highlighted the
co-benefits of adaptation action in the agriculture and water supply sectors as it relates to
achieving individual Sustainable Development Goals.

B. Information and data on needs from other reports

35. In response to the call for evidence, Colombia provided additional quantitative
information that updated its NDC costed estimates for adaptation needs and for mitigation
needs up until 2030.11 Ukraine provided an updated breakdown of its mitigation needs by
2030.1213
36. Information and data on the needs of developing countries from regional and global
reports are predominantly based on integrated energy–climate models that take into account
climate, socioeconomic, technological and financial factors to forecast energy use,
technology deployment and corresponding investments across a variety of economic sectors.
37. The annual mitigation investment needs of developing countries up until 2030 are
estimated to be USD 1.1–2.4 trillion, and up to 2.9 trillion up until 2035 across available
sources of information.14 Sources of information that compare current investment trends to
estimated energy needs further highlight that the largest increases in investment (incremental
investments) will be required in developing countries, with large regional differences in
multiplication factors ranging from 2–4 times (Eastern Asia) to 10–20 times (Middle East).15

11 Costed needs for Colombia in their submission amount to USD 1.63 billion to USD 2.93 billion for
adaptation needs until 2030 and USD 2.3–3.8 billion for annual mitigation needs up until 2030.
12 Costed needs for Ukraine in their submission amount to USD 98.4 billion by 2030. The SCF notes
that under the Convention, Ukraine is listed as an Annex I Party and as a country that is undergoing
the process of transition to a market economy.
13
Reflection of the data does not represent any views of the SCF with regard to the status of any Party
under the Paris Agreement.
14 Bhattacharya A, Songwe V, Soubeyran E, et al. 2023. A climate finance framework: decisive action to
deliver on the Paris Agreement – Summary. Second report of the Independent High-Level Expert
Group on Climate Finance. London, UK: London: Grantham Research Institute on Climate Change
and the Environment, London School of Economics and Political Science. Available at
https://www.lse.ac.uk/granthaminstitute/wp-content/uploads/2023/11/A-Climate-Finance-
Framework-IHLEG-Report-2-SUMMARY.pdf; BNEF. 2023. Mobilizing Capital in and to Emerging
Markets. London, UK: BNEF commissioned by GFANZ. Available at
https://assets.bbhub.io/professional/sites/24/Mobilizing-Capital-in-and-to-EMDEs.pdf; IEA. 2024.
Reducing the Cost of Capital. Paris: IEA. Available at https://www.iea.org/reports/reducing-the-cost-
of-capital; IMF. 2023. Financial and Climate Policies for a High-Interest-Rate Era. Global Financial
Stability Report. Washington D.C.: International Monetary Fund. Available at
https://www.imf.org/en/Publications/GFSR/Issues/2023/10/10/global-financial-stability-report-
october-2023#Overview; Kreibiehl S, Yong Jung T, Battiston S, et al. 2022. Investment and finance.
In: Climate Change 2022: Mitigation of Climate Change. Contribution of Working Group III to the
Sixth Assessment Report of the Intergovernmental Panel on Climate Change. Cambridge, UK and
New York, NY, USA: Cambridge University Press. Available at doi: 10.1017/9781009157926.017.
15 Data from IEA. 2023. World Energy Outlook. Paris: IEA. Available at
https://www.iea.org/reports/world-energy-outlook-2023; IMF. 2023. Global Financial Stability
Report. October 2023. Washington D.C: International Monetary Fund. Available at

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38. Most investment needs for mitigation in developing countries are in the energy sector,
particularly in the power generation, grids and storage subsectors, until 2030 at 54 per cent
of USD 2.4 trillion in annual needs, followed by energy efficiency in buildings, transport and
industry at 27 per cent in the same time frame.16 After 2030, the power generation, grids and
storage sub-sectors remain dominant at 52 per cent of USD 2.9 trillion in annual investment
needs but energy efficient investment needs become more prominent at 34 per cent. Low
emission fuels and carbon removal technologies comprise up to 6 per cent of investment
needs in mitigation scenarios, and unabated fossil fuel investment comprises 14 and 8 per
cent in the respective time frames. Other estimates of fossil fuel supply investment needs
based on expected demand or of reference cases are higher, from USD 610 billion globally
per year for oil supply from 2022 to 2045,17 or USD 738 billion in upstream investment in
oil and gas globally by 2030.18 The investment needed for the envisaged capacity needs for
carbon dioxide capture and storage projects is estimated at USD 100–250 billion per year up
until 2030 and USD 435 billion to USD 1 trillion per year by 2050. 19
39. Regional and global reports also provide estimates related to adaptation and
resilience. The AR6 compared available evidence of the annual adaptation costs of
developing countries and reported a median estimate of USD 127 billion (ranging from USD
15 billion to USD 411 billion) for 2030 and USD 295 billion (ranging from USD 47 billion
to USD 1.088 trillion) for 2050. The United Nations Environment Programme Adaptation
Gap Report 2023 provides an updated central range for annual adaptation costs of developing
countries of USD 215–387 billion in 2030 based on two methodological approaches. The
lower bound of the range is the median estimate derived from an aggregation of available
sectoral modelling studies, while the upper bound is derived from an analysis and
extrapolation of 85 NDCs and NAPs as at July 2023.
40. With regard to sectors, existing assessments point to the highest costs and greatest
needs in the areas of resilient infrastructure and agriculture, as well as coastal zones, flood
protection and water management more broadly. Available sources of information conclude
that adaptation and resilience needs are highest in Asia, followed by Africa, Latin America
and the Caribbean, and Eastern Europe.
41. Some sources of information contain cost estimates for climate-induced losses and
damages in developing countries. While the identification of a robust range of estimates with
confidence is not possible owing to a range of methodological challenges, the AR6 noted that
global aggregate economic impacts could be higher than previously estimated. Regarding
estimated cost as a percentage of gross domestic product, available studies reviewed for this
report are at a similar scale to the indicated median range of 0.2–2.0 per cent reported by
Working Group II in its contribution to the AR5.
42. Information and data generated from the national, regional and global reports cannot
be compared across reports, as they have different time frames, objectives and scopes.

https://www.imf.org/en/Publications/GFSR/Issues/2023/10/10/global-financial-stability-report-
october-2023; Kreibiehl S, Yong Jung T, Battiston S, et al. 2022. Investment and finance. In: Climate
Change 2022: Mitigation of Climate Change. Contribution of Working Group III to the Sixth
Assessment Report of the Intergovernmental Panel on Climate Change. Cambridge, UK and New
York, NY, USA: Cambridge University Press. Available at doi: 10.1017/9781009157926.017;
Yilmaz F, Alswaina F, Belaid F, et al. 2023. Closing the Investment Gap to Achieve Paris Agreement
Goals. KAPSARC. Available at https://www.kapsarc.org/research/publications/closing-the-
investment-gap-to-achieve-paris-agreement-goals/.
16 IEA. 2024. Reducing the Cost of Capital. Paris: IEA. Available at
https://www.iea.org/reports/reducing-the-cost-of-capital.
17 OPEC. 2023. World Oil Outlook 2023. Vienna: OPEC. Available at https://woo.opec.org/index.php.
18 International Energy Forum and S&P Global Commodity Insights. 2024. Oil and Gas Investment
Outlook. Available at https://www.ief.org/focus/ief-reports/upstream-oil-and-gas-investment-outlook-
2024.
19 KAPSARC. 2024. Submission to the call for evidence from the SCF. Available at
https://unfccc.int/topics/climate-finance/resources/standing-committee-on-finance-info-
repository#Report-on-the-determination-of-the-needs-of-developing-country-Parties-related-to-
implementing-the-Convention-and-the-Paris-Agreement

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However, all the reports may be viewed as complementary in offering different insights,
granularity, processes and approaches for identifying needs.

C. Processes and approaches for the determination of needs in developing

country Parties

43. Developing country Parties have varied institutional arrangements for identifying
climate change needs, which are described in most of their national reports. While
arrangements are diverse, many countries have established specialized ministries or
institutions within their ministries whose mandate is to lead climate change action and
relevant coordination processes.
44. These institutional arrangements can often extend to processes for determining needs
in which a steering committee or climate change unit within a lead ministry is identified to
lead and coordinate efforts on the needs identification process. The committee or unit, which
is often led by a focal point, takes up the role of identifying the needs and deciding on the
approaches to use. Some countries have established an interministerial committee to facilitate
cross-sectoral coordination among ministries and support work on data collection. In total,
90 per cent of NAPs and 45 per cent of BURs and NCs reported having such interministerial
committees in place.
45. Stakeholder consultation is a key part of the needs identification process; however,
the stakeholders consulted are mainly driven by the type of institutional arrangements that a
country has adopted for this process. Therefore, the stakeholder consultation process varies
widely. Some countries adopt broad stakeholder consultations and an interministerial
committee facilitates collaboration between government institutions, subnational authorities,
civil society and the private sector.
46. A total of 76 per cent of Parties that submitted NDCs referred to formal arrangements
being in place for consulting stakeholders, including the general public, local communities,
Indigenous Peoples, private entities, business and trade associations, civil society
organizations, youth associations, women’s associations, regional development partners,
academia and research communities. And 91 per cent of those Parties indicated that they
conducted such consultation processes in an inclusive and participatory manner.

D. Methodologies and underlying assumptions used in determining the

needs of developing country Parties

1. Methodologies used in national reports of developing country Parties

47. Needs determination at the national level and corresponding methodologies vary, but
tend to follow a general sequence of first identifying and prioritizing needs and actions and
then arriving at quantified financial estimates of identified needs.
48. The methodological steps used for assessing and determining needs vary in the
amount of detail in the reports of developing country Parties and are commensurate with the
guidelines related to the different report types. Parties provide information on the methods
and assumptions used in determining mitigation contributions, targets and measures, and
adaptation measures. The advent of biennial transparency reports under the enhanced
transparency framework, prepared in accordance with the modalities, procedures and
guidelines for the transparency framework for action and support referred to in Article 13 of
the Paris Agreement, provides an opportunity to improve the communication of information,
and the methodologies and assumptions used, in determining the needs of developing country
Parties, possibly by applying a more standardized format than in other report types.
49. In terms of identifying mitigation needs, many Parties use models such as LEAP and
the Greenhouse Gas Abatement Cost Model when describing the methodologies and
assumptions used to account for the implementation of policies and measures or strategies in
their NDCs. Other methods referred to by Parties include applying multi-criteria indicators
and performing socioeconomic analysis that considers economic and social factors to
determine the feasibility and affordability of measures in a given time frame and using a

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sector-specific performance matrix depending on the requirements of the Party. Almost all
TNAs adopt multi-criteria analysis to prioritize the technology needs of developing country
Parties.
50. In preparing NAPs, Adcoms and other adaptation components of national reports,
most Parties apply risk and vulnerability assessments from existing studies at the sectoral
level or assessments from regional centres and networks. Climate vulnerability and risk
assessments include identifying risk, particularly for vulnerable sectors or vulnerable
population groups, and assessing the risk in terms of hazards, exposure and vulnerability. For
some Parties, current climate data are limited, do not cover all sectors or are not compatible
with current meteorological models. These Parties reference regional and global assessments
for the synthesis of impacts, vulnerability and adaptation. For instance, most NAPs refer to
the latest reports of the IPCC, including AR5 and AR6.
51. Parties often rank and prioritize their adaptation options using multi-criteria analysis
and cost–benefit analysis. Multi-criteria analysis is used to characterize selected sectors and
to identify and prioritize key measures on the basis of predetermined criteria such as cost-
effectiveness and feasibility. Other methods mentioned by Parties include applying criteria
such as timing or urgency, cost, efficacy, flexibility, economic and social implications and
political acceptance.
52. A review of information related to cost estimates of needs reported in NDCs found
that 11 per cent of the estimates were accompanied by a description of the methodology used
in deriving them, while 83 per cent did not have a description and the remainder had a partial
description, for example only for specific themes, noting this information is not required.
However, approximately half of the costed needs without a description on their cost
estimation approach presented information in a way in which approaches could be inferred,
for example through extensive sector and project lists, sometimes including unit cost
assumptions.

2. Methodologies used in regional and global reports on the needs of developing country
Parties
53. Regional and global assessments of mitigation and adaptation needs are
predominantly based on top-down integrated climate, energy and macroeconomic modelling,
whereby key assumptions on climate scenarios and ambition, energy demand and supply,
technology choices and costs, and socioeconomic development have an impact on resulting
estimates on investment needs. Several regional and global reports refer to the first NDR as
informing updated bottom-up analyses of climate investment needs, in particular at the
regional level and for adaptation.
54. There are limitations with the variance in methodologies across regional and global
reports, with key assumptions and calculations for arriving at aggregate estimates, including
assumptions on technology costs and the need for different types of financial support, were
not always available across the regional and global reports analysed in the second NDR,
which hindered a broader understanding of their robustness and comparability. Further, the
regional and country classifications used in available studies varied, which affected the
comparability of needs estimates by geographical region and for developing country
groupings as a whole.

E. Gaps, challenges and opportunities in determining the needs of

developing country Parties

55. The submissions of biennial transparency reports in 2024 and enhanced NDCs in 2025
represent important milestones for making progress in reducing gaps, addressing challenges
and seizing opportunities related to determining the needs of developing countries.
56. The primary gaps associated with determining the needs of developing countries
include data and information gaps and institutional gaps. Data and information gaps pertain
to the lack of robust, comprehensive and comparable information on the needs of developing
countries. Institutional gaps pertain to the lack of capacity within many developing countries

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to perform such needs assessments. Each of these data gaps has a number of associated
challenges.
57. For data and information gaps, the principal challenges are methodological and
assumption challenges. Methodological challenges relate to the wide variety of
methodological approaches employed for assessing needs and the high technical complexity
involved. The lack of commonality or standardisation creates a challenge for how
information included in national reports can be interpreted and compared at different levels
of granularity. Methodologies are made and utilized based on assumptions with regards to
climate change or economic scenarios, or various domestic aspects. However, climate change
and economic scenarios must rely on different sets of assumptions with differing degrees of
confidence. Significant differences in methodologies and assumptions across assessments
pose technical issues for aggregation and comparability.
58. For institutional gaps, the principal challenges are coordination and resource
challenges. Coordination challenges exist in coordinating across multiple entities, across
scales (i.e. national, subnational and local scales) and with stakeholder groups. Resourcing
challenges exist in accessing and securing the needed technical, human and financial
resources in order to prepare robust needs assessments and in building sustainable capacities
for the long term.
59. For methodological challenges, opportunities exist to enhance the comprehensiveness
and comparability of needs determination assessments, in part by developing and adapting
international best practices to balance standardization and context specificity, such as those
used in the World Bank’s Country Climate and Development Reports. The establishment of
best-practice methodologies and continued efforts to build capacity globally will enable more
countries to report, thereby improving comprehensiveness and comparability. Achieving this
improvement entails enhancing knowledge exchange, capacity-building and technical
support.
60. For assumption challenges, opportunities exist to enhance reporting and information-
sharing on assumptions used as the basis for needs assessments, which will further contribute
to the comprehensiveness and comparability of those assessments.
61. For coordination challenges, opportunities exist to strengthen coordination practices
including through exchanging information and best practices with a view to adopting whole-
of-government and whole-of-society approaches and leveraging diverse expertise and
perspectives. This will contribute to the comprehensiveness of needs assessments.
62. For resourcing challenges, opportunities exist to improve access to relevant data and
information, including through approaches that strengthen national data collection and
maintenance systems, as well as by enhancing international cooperation and data-sharing,
where appropriate. Further, human resources can be improved through training and other
capacity-building activities, as well as by leveraging synergies with other reporting processes
in order to minimize reporting burden. Finally, financial resources can continue to be scaled
up for needs assessments, including by leveraging existing funding opportunities for
preparing climate plans and strategies, allocating an appropriate proportion of those financial
resources for needs determination activities and adjusting existing financial mechanisms to
further avail readiness support that is targeted to costing the needs of developing countries.

III. Recommendations
63. Based on the key findings set out in chapter II above, the SCF invites the COP and
the CMA to consider the following recommendations:
(a) Encourages developing country Parties to provide increased granularity on
their needs to implement nationally determined climate actions, policies and measures, in
particular whether they are to be addressed through domestic resources and/or international
support, subject to availability;
(b) Encourages developing country Parties to make full use of the common tabular
formats in the biennial transparency reports under the enhanced transparency framework of

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the Paris Agreement to provide additional information, where available, on needs including
on instruments and support needed for reporting;
(c) Encourages developing country Parties, when reporting on their needs, to
specify the methodologies and underlying assumptions used in identifying needs, subject to
available capacity and resources;
(d) Encourages relevant institutions supporting developing country Parties in
identifying and costing their needs, such as the operating entities of the Financial Mechanism,
UN agencies, multilateral agencies and institutions and capacity-building initiatives, to
continue these efforts including through standardized toolkits for identifying and costing
needs, as well as the strategies to implement them;
(e) Recognizes the need for continued support to assist developing country Parties
in completing and submitting their national reports under the Convention and Paris
Agreement including with regard to those elements referenced in sub-paragraph (a) above;
(f) Encourages relevant institutions supporting readiness funding and project
preparation support to consider how funding supports sustained technical capacities in
developing country Parties on addressing gaps for needs assessment, including for gender-
responsive climate action;
(g) Encourages relevant institutions gathering data and information on needs of
developing country Parties for sustainable development and climate action to improve
transparency and access to comparable and comprehensive data on needs of developing
countries identified through their activities;
(h) Encourage developing country Parties and relevant institutions gathering data
and information on needs of developing country Parties to enhance efforts, approaches and
information related to:
(i) Gender-responsive climate action and the needs of Indigenous Peoples and
vulnerable groups;
(ii) The nexus of energy access, climate action and sustainable development;
(iii) Averting, minimizing and addressing loss and damage;
(i) Encourages the strengthening of coordination practices by Parties including
through exchange of information and best -practices with a view to leveraging a diversity of
expertise and perspectives, including to undertake gender analysis and to pursue participatory
stakeholder engagement with particularly those in vulnerable situations, such as women,
girls, youth, Indigenous Peoples and local communities, when costing needs of developing
country Parties for their actions under the Convention and the Paris Agreement;
(j) Encourages relevant institutions undertaking needs assessments for developing
country Parties to consider reporting on how their assessments take into account country
investment and financial strategies, as well as coherence with broader country development
strategies and plans.

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