In a world where climate change presents both pressing challenges and unparalleled opportunities, the UN-convened Net-Zero Asset Owner (NZAOA) is making waves with its pioneering approach to sustainable finance. These topics are expanded on in the interviews with member principals and co-convenors; watch that they had to say about the alliance’s achievements and challenges.

At a 23 September roundtable discussion during Climate Week NYC, prominent UN leaders, civil society representatives and Alliance members gathered to evaluate strategies, celebrate progress and discuss the path forward in catalysing the private sector’s role in global climate initiatives.

On the Alliance’s fifth anniversary, senior UN representatives acknowledged significant progress made by the Alliance since its launch at the UN Secretary-General’s Climate Action Summit in 2019.

Such momentum underscores the importance of collaborative efforts in propelling the climate agenda forward. The critical financial focus was highlighted for 2024, particularly the importance of mobilising private sector investments at the Conference of the Parties of the United Nations Framework Convention on Climate Change (COP29) in Baku, Azerbaijan. The Alliance was recognised as a “bridge to the real economy”, facilitating financial flows that drive climate action at scale.

Civil society representatives highlighted the pioneering efforts of the Alliance for setting what Secretary-General António Guterres had described as a “gold standard” for credible net-zero commitments and transparent targets. They urged members to continue leveraging their position to influence policy, especially in sectors and geographies that are “ripe” to transition away from fossil fuels.

Their call to action included two main invitations—eliminating deforestation and to “set expiration dates” for fossil fuels in countries that are ready for it. Encouraging the financial community to deploy its expertise at events like COP and advocate for policies that support sustainable practices across sectors is crucial.

Investor members highlighted the vital role of non-governmental organisations and the UN in empowering the Alliance to succeed in its mission. Reporting at least a 6 per cent annual reduction in financed emissions, one stressed the huge potential of making Nationally Determined Contributions (NDCs) investable. The emphasis must now be on detailed NDCs that align with information grids, they said, allowing for a comprehensive transition towards sustainability.

During a lively discussion, one investor emphasised the importance of ambition and credible frameworks in communicating with general partners in the private markets. They pointed out the value of private assets, noting that this sector has the expertise to create alignment and value, essential for scaling climate finance. Another Alliance member expressed gratitude for the guidance provided by the Alliance, describing the 88-member group as “the rock” of its climate strategy.

Meanwhile, the complexities of US policy and the need for bilateral engagement was acknowledged. Capitalising on opportunities regardless of administrative changes is important to provide a consistent approach to climate policy.

Breakthrough moments in scaling finance to emerging markets and developing economies (EMDEs) underscores the global reach of the Alliance’s efforts. Alliance members and partners have published a booklet on blended finance, highlighting the potential for concessional finance and Foreign Direct Investment (FDI) to scale up investments significantly.

The Alliance roundtable illuminated the multifaceted approach to tackling climate change through sustainable finance. With allies spanning NGOs, policymakers, and the private sector, the organisation continues to drive forward the net-zero agenda and sustainable development. The Alliance is not just setting standards but also laying the groundwork for enduring, impactful change, participants agreed. These topics are expanded in the interviews with member principals and co-convenors; watch that they had to say about the alliance’s achievements and challenges.

Investors, policymakers, and campaigners alike must continue to engage with these initiatives, ensuring that meaningful climate action remains at the forefront of the global conversation.

About the UN-convened Net-Zero Asset Owner Alliance

The UN-convened Net-Zero Asset Owner Alliance (the Alliance) is a member-led initiative of 88 institutional investors, with US$9.5 trillion in assets under management, committed to transitioning their investment portfolios to net-zero GHG emissions by 2050. The Alliance members were the first in the financial industry to set intermediate targets (aligned with the Paris Agreement schedule) and they report on their progress annually. The Alliance is convened by UNEP FI and PRI, and is supported by WWF and Global Optimism. The NZAOA’s five key milestones since 2019 can by seen here.