Baku, Azerbaijan, 14 November 2024 – At COP29 today, a landmark global coalition of financial organisations and initiatives—including the International Development Finance Club (IDFC), the Principles for Responsible Investment, the Mainstreaming Climate in Financial Institutions initiative and UNEP Finance Initiative has released a set of recommendations for the post-2025 climate finance framework.

The coalition aims to support a breakthrough in the NCQG (New Collective Quantified Goal) negotiations at COP29 and lay the groundwork for an urgent overhaul of climate finance capable of meeting the objectives of the Paris Agreement. This effort is truly global, backed by coalitions and initiatives that between them bring together over 5,000 financial institutions with hundreds of trillions of dollars in assets, spanning developed and developing countries and bridging both public and private sectors.

The group’s recommendations advocate for a more strategic and effective mobilisation of both public and private capital to drive climate mitigation, adaptation, and resilience, particularly focusing on the needs of developing nations. The recommendations also emphasise the key role of public development banks in establishing environments that enable large-scale climate investment, and call for the strategic use of concessional finance to mobilise private capital for high-impact climate projects.

“We are pleased to bring these insights forward at COP29, urging policymakers to establish an ambitious post-2025 finance framework that will mobilise financial flows on a global scale,” said Eric Usher, Head of UNEP FI. “This unique coalition, representing both public and private finance from across the globe, stands ready to support these efforts, providing essential resources and collaborative leadership to drive climate action.”

The coalition will continue discussions with UNFCCC negotiators and other stakeholders throughout COP29 and beyond, providing actionable recommendations to enhance the global climate finance framework.

“Today, for the first time, more than 40% of the global financial sector is joining forces in a whole-of-system approach to transforming frameworks, building a collaborative financial architecture and raising ambition,” said Rémy Rioux, CEO of AFD, Vice-Chair of IDFC and Chair of Finance in Common. “The coalition calls on additional financial stakeholders to reinforce this agenda, including to realise the full potential of all Public Development Banks worldwide to ensure that financial systems globally work for climate and sustainability”.

Access the full NCQG Joint Statement here. Find a summary of the coalition’s key recommendations below.

  • Transforming Climate Finance through Quantitative and Qualitative Shifts
    • The coalition advocates for a climate finance framework that builds on best practices, adapts to diverse national contexts, and ensures all financial flows are aligned with climate-consistent pathways. This framework should support the mobilisation of public and private finance, especially to address decarbonisation and resilience needs in developing countries.
  • Enhancing Public Finance to Mobilise Private Investment
    • Public Development Banks (PDBs)—at regional, national, and sub-national levels—are essential in establishing environments that enable large-scale climate investment. The coalition calls for strategic use of concessional finance to mobilise private capital for high-impact climate projects.
  • Establishing System-Wide Visibility
    • The post-2025 climate finance regime should incorporate clear frameworks for tracking financial flow alignment with climate targets and support differentiated reporting for transformative finance.
  • Focusing on Transformational Climate Finance
    • To drive systemic change, the coalition recommends an approach that combines support for individual investments with broader efforts in policy reform, capacity building, and technology innovation. PDBs are encouraged to play a central role in financing these structural transitions.

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