The Chartered Banker Institute’s Post

London’s role as a global hub for sustainable finance shines as #COP29 highlights transition finance needs. As nations set ambitious climate finance goals, all eyes are on private sector funding to close the gap toward #NetZero.

🌍 As 50,000+ government officials, policymakers, investors, and non-state actors head to Baku for #COP29, all eyes are on a potential new climate finance goal that could define this event as the "#FinanceCOP." The New Collective Quantified Goal (#NCQG) on climate finance aims to accelerate climate action in developing countries, replacing the previous USD100 billion annual target, which was delayed in delivery by developed nations. Adding momentum, the COP29 Presidency has introduced the Climate Finance Action Fund (#CFAF), seeking voluntary contributions from #fossilfuel producers to support #climate projects in developing nations. Acknowledging the private sector's role within the NCQG could signal investors towards #climateambition post-2025 and strengthen commitments to bridging finance gaps. With studies indicating a need for USD2.4 trillion annually in #climatefinance for developing countries by 2030, and USD1 trillion in #cleanenergy investments alone, COP29’s policy outcomes could be pivotal for climate finance in this decisive decade. #COP29 #ClimateFinance #SustainableInvestment

🌍🌱 COP29 is just around the corner, taking place in Baku from November 11-22. Expect the New Collective Quantified Goal (NCQG) on climate finance to lead discussions, alongside a focus on updated national climate commitments. Stephanie Pfeifer OBE, IIGCC CEO, recently published an open letter calling on the NCQG to: "include clear recognition of the private sector's role." Updated and improved Nationally Determined Contributions (NDCs) will also be high on the agenda at 'The Finance COP'. Improved and more investable NDCs can be a powerful tool to attract private investment in emerging markets and developing countries. Our latest insight explores these key issues and what they might mean for investors, outlining our recommendations for the NCQG. https://lnkd.in/e5F5wytx #SustainableFinance #COP29 #FinanceCOP #NDCs #NCQG

💡 Finance took centre stage at Bonn climate meetings, with negotiations on the new global climate finance goal featuring heavily. The New Collective Quantified Goal (NCQG) will likely be a defining issue at COP29 in Baku. While primarily a public finance commitment, a bolder, more ambitious approach to the NCQG can send strong signals to the international finance system. Our message going forward is that to be most effective, the delivery of finance must be considered on a case-by-case basis, with access remaining a key issue for investors. ⚖ The next set of Nationally Defined Contributions (NDCs) was also a recurring theme. Active engagement from the private sector will be key in pushing progress and ambition for national climate goals and climate finance commitments alike. Familiar arguments in global negotiations meant slow progress on finance discussions with no concrete agreements. Nonetheless, there was a willingness to find common ground ahead of the next round of talks, on areas including transparency. 📄 Read the full article from Arianna Griffa, Senior Policy Manager – Global: https://lnkd.in/g44-w9gG #NDCs #NCQG #COP29 #Bonn #ClimateChange

COP29 is just weeks away, and the big issue on the table is climate finance: how do we get more money to those most in need, to ensure developing countries can step up their ambition in the next round of NDCs, and keep us on track to meet the Paris Agreement goals? However, it's not just about more money - it's also about making sure that money is driving real impact. I'm excited to have co-authored a new report at Environmental Defense Fund, which makes the case that the quality of climate finance matters just as much as the quantity. Quality climate finance is characterized by its effectiveness at driving positive climate outcomes and catalyzing long term change - but current international climate finance flows often fall short, as finance can be inaccessible, ineffective, or overly burdensome for developing countries. Our report underscores the need to maximize the impact of climate finance, by addressing systemic and structural challenges in the international finance system. We focus on three key aspects of quality finance – concessionality, access, and impact – that can support effective climate action, and offer recommended language to integrate quality into the New Collective Quantified Goal (NCQG) on climate finance, alongside recommendations to multilateral institutions to strengthen quality. Grateful to all my co-authors and colleagues who helped bring this report to life! Juan Pablo Hoffmaister Leslie Labruto Tom Clynes Sommer Yesenofski Check out our report here: https://lnkd.in/eciTjUFj #ClimateFinance #NCQG #COP29 #ClimateAction #QualityFinance

Why I believe that a breakthrough on climate finance at COP 29 is much beyond an additional fund or a new instrument with no sustainable financing arrangements or a decision to encourage the private sector to come forward. But a systematic overhaul of the entire climate finance infrastructure aiming to streamline the existing processes must facilitate speedy and streamlined access to existing funds!!! #cop29 #climatefinance #climatepolicy @worldbank Asian Development Bank (ADB) UNDP

We, in the climate community, talk a big game about wanting the quantity of climate finance to ramp up, but what about the quality of that finance? Is the capital available to lower-income countries? Is it actually reducing emissions and supporting end-users to build climate resilience? As capital providers, it's time we start making sure that climate finance $ is concessional, accessible, and impactful. My friend and colleague, Zach Cohen, says it best below. And check out our new report on the topic: https://lnkd.in/eciTjUFj. Drop a comment, too, if you'll be at COP29 this year and want to dig deeper on climate finance.

🌱🌍 As the dust settles on #COP29 and we look towards #COP30 later this year, EcoAct's Chimdi Obienu reflects on the future implications this might have for the VCM. "While the COP29 outcomes were decidedly mixed, the latest annual UN climate meeting in Azerbaijan produced several potentially transformative developments for the voluntary carbon market. With climate finance needing to increase at least five-fold from current levels to $1.3 trillion annually to limit warming to below 1.5°C1, carbon markets are essential for mobilising private sector investment alongside public funding" Read the full article here 👉🏻 https://hubs.ly/Q0343M0r0

🌍 At COP29 in Baku, a groundbreaking report from the Independent High-Level Expert Group on Climate Finance highlights an urgent call: to meet the Paris Agreement’s goals, the world must mobilise USD 1 trillion annually by 2030 to support climate action in emerging markets and developing countries (excluding China). This target will rise to USD 1.3 trillion by 2035. 🌍 The report said delayed action will amplify future financial burdens and compromise global climate goals. To bridge this critical gap, it lays out four key pillars for financing transformation: 1️⃣ Triple Annual Climate Finance Pledges: Advanced economies should triple the 2009 climate finance pledge to USD 300 billion by 2030. 2️⃣ Expand MDB Capacity: Multilateral Development Banks, such as the World Bank, must triple lending capacity by 2030. 3️⃣ Private Sector Investment: The private sector is expected to provide about half of the necessary external financing, especially for renewable energy. 4️⃣ Strengthened South-South Cooperation: Enhanced financial contributions from key developing countries and South-South collaboration will be crucial for resilient and sustainable development. With climate costs projected to reach USD 6.3–6.7 trillion annually by 2030, this report underscores the importance of timely action. Key investment areas like Clean Energy, Adaptation, and Sustainable Agriculture require urgent attention to avoid severe climate and financial impacts. As global climate champions, we must embrace these recommendations, advocate for innovative financing mechanisms, and ensure a sustainable future for all. https://lnkd.in/gmh2a2wt 🌱 #COP29 #ClimateFinance #ParisAgreement #SustainableDevelopment #ClimateAction

Insightful read from Carbon Brief on how different interpretations of #climatefinance lead to very different figures. The newly agreed #NCQG at #cop29 - $1.3 trillion #bakufinancegoal with a core finance goal of $300 billion - raises important questions: how to close the quantity gap, improve quality, and ensure funds are delivered timely and effectively? #climatemitigation #climateadaptation