Stephanie Pfeifer, IIGCC CEO, has published an open letter expressing support for an ambitious New Collective Quantified Goal (NCQG) on climate finance and outlining key recommendations, including “clear recognition of the private sector’s role.”
Many investors see investment opportunities in both developed and developing countries and stand ready to work with policymakers to unlock the finance needed to deliver a net zero and climate resilient world by 2050.
Taking lessons learned from the $100bn goal, we know that insufficient financial resources are a risk to the ambition and implementation of Nationally Determined Contributions (NDCs) and could further delay global climate action. This poses long-term systemic risks to global financial stability, which is relevant to investors’ fiduciary duty.
To address the climate finance gap in developing countries, many global investors are beginning to explore ways to unlock and mobilise capital. An ambitious finance goal that includes private capital can encourage greater ambition in developing countries’ NDC targets by building confidence in accessible funding for both mitigation and adaptation, with the latter being historically underfunded.
The NCQG can bring all parts of the financial system together by sending strong political signals, including a clear recognition of the private sector’s role.
