The United Nations Framework Convention on Climate Change (UNFCC) has been consulting with different stakeholders to finalised the Baku to Belem Roadmap to USD 1.3 trillion annually. IIGCC shared their response outlining the economic, social and investment opportunities this can present to institutional investors.
Addressing climate change in developing countries requires trillions of dollars of
investments over the coming decades. The urgency and scale of the challenge will require the rapid mobilisation of all sources of finance, including the private sector, to achieve the headline target of USD 1.3 trillion by 2035.
The decision at COP29 in Baku on the New Collective Quantified Goal (NCQG) on Climate Finance, launching the “Baku to Belém Roadmap to 1.3T” has been a welcome step to deliver finance at scale, and complements the critical USD 300bn public finance goal agreed last year.
Against the backdrop of worsening climate impacts and shrinking public budgets, the Roadmap represents a significant opportunity to set out near- to long-term actions. These actions aim to enhance all sources of climate finance to meet developing countries’ needs and climate ambition, with a particular focus on mobilising private capital at scale.
The long-term economic and societal benefits of early investments in mitigation and adaptation – by cutting emissions faster and reducing exponentially larger future losses – are widely recognised. Yet private investors still face challenges in making the case for near-term financing, particularly in developing countries.
In the remaining months before world leaders meet in Belem, we welcome the opportunity to share our investor insights with the COP29 and COP30 Presidencies. Our aim is to help deliver an ambitious roadmap that sends clear signals to Parties and the wider financial ecosystem, encouraging action to align incentives and financial flows with a net-zero, resilient and nature-positive future.