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.

“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 define transformational finance as the bridge between Climate and Paris-aligned finance, to turn policies and institutions towards SDGs. And to build a collaborative global financial architecture, with the Finance in Common system as its backbone, able to unlock and implement more ambition. We particularly thank colleagues from the private sector for their support,” said Rémy Rioux, CEO of AFD, Vice-Chair of IDFC and Chair of Finance in Common.

Access the full NCQG Joint Statement here. The coalition’s key recommendations refer to:

• Addressing climate mitigation, adaptation and loss and damage priorities, by
  substantially increasing financial volumes targeting them; avoiding action with negative
  climate effects, by fostering the alignment of financial flows with countries’ low-carbon
  and resilient development pathways and the goals of the Paris Agreement; acting at a
  systemic level for whole-of-economy shifts, beyond specific projects and investments’
  direct impacts, by fostering finance that is effective in enabling or enhancing positive
  transformations.
• A more strategic, collaborative and qualitative use of public finance, contributing to the
  mobilization and reorientation of public and private financial flows towards climate
  action.
• The particular role all Public Development Banks –from multilateral to regional,
  international, national and sub-national– can play to help move from transaction-level
  impacts to more systemic, cross-sectoral, whole-of-society effects.
• The importance of system-wide coherent frameworks to guide action, and the
  characterization of “Transformational finance for climate”, i.e. finance aiming at the
  sustainable transformation of entire systems or catalytic effects on mobilizing and
  reorienting larger financial flows. This implies, among others, acting on systemic levers
  and making, in a structural manner, Paris-aligned investments more financially attractive
  than non-aligned or misaligned investments.

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