As countries start developing their new Nationally Determined Contributions (NDCs) due in early 2025, private finance has a critical role to play to support the implementation of ambitious climate goals.
NDCs can be a useful tool for investors to assess countries’ long-term climate ambition; however, in their current form, NDCs vary significantly in quality and detail across countries, and often lack sufficient information on policy implementation to effectively guide investment decision-making. Beyond assessing long term decarbonisation targets, investors are looking to identify
the country’s technological and sectoral opportunities and learn about the policy landscape to better understand the forward-looking implications for meeting their stated targets.
In their updated NDCs, countries have the chance to develop more comprehensive and credible documents that attract further long term private investment, by helping investors to better understand the policy landscape, assess investment risks and opportunities, and facilitate engagement to support implementation.
We have worked closely with investor members of the NDC thematic working group to identify key recommendations for countries preparing their updated NDCs.
Investor views on how to develop ‘investable’ NDCs