At the COP29 conference, a significant collective of public and private financiers announces suggestions for climate finance objectives beyond the year 2025.

Global Coalition Unveils Post-2025 Climate Finance Framework Recommendations at COP29

A global coalition, comprising key institutions such as the European Union, China, the Potsdam Institute for Climate Impact Research (PIK), and the KfW development bank, has published recommendations for the post-2025 climate finance framework at COP29. The coalition, representing 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, is spearheading a collaborative effort to drive climate action.

The group's recommendations focus on the strategic and effective mobilization of both public and private capital for climate mitigation, adaptation, and resilience, particularly in developing nations. Eric Usher, Head of the coalition, urges policymakers to establish an ambitious post-2025 finance framework that will mobilize financial flows on a global scale.

The coalition advocates for a more strategic, collaborative, and qualitative use of public finance to contribute to the mobilization and reorientation of public and private financial flows towards climate action. More than 40% of the global financial sector is uniting to define transformational finance as the bridge between Climate and Paris-aligned finance.

The recommendations emphasize the importance of system-wide coherent frameworks to guide action, and the characterization of "Transformational finance for climate". The coalition's efforts are truly global, backed by coalitions and initiatives that span developed and developing countries and bridge both public and private sectors.

The coalition's goal is to provide essential resources and collaborative leadership to drive climate action. The coalition's recommendations suggest that finance aiming at the sustainable transformation of entire systems or catalytic effects on mobilizing and reorienting larger financial flows is crucial.

The coalition's efforts extend beyond COP29, with continued discussions with UNFCCC negotiators and other stakeholders to enhance the global climate finance framework. The coalition aims to support a breakthrough in the NCQG negotiations at COP29 and lay the groundwork for an urgent overhaul of climate finance to meet the objectives of the Paris Agreement.

Rémy Rioux, CEO of AFD, Vice-Chair of IDFC and Chair of Finance in Common, has spoken in support of the coalition's efforts. The coalition's recommendations highlight the particular role all Public Development Banks can play to help move from transaction-level impacts to more systemic, cross-sectoral, whole-of-society effects.

The coalition's recommendations focus on addressing climate mitigation, adaptation, and loss and damage priorities by substantially increasing financial volumes targeting them. The coalition's efforts are building a collaborative global financial architecture, with the Finance in Common system as its backbone.

The coalition is aiming to turn policies and institutions towards the Sustainable Development Goals (SDGs). The coalition's recommendations urge fostering the alignment of financial flows with countries' low-carbon and resilient development pathways and the goals of the Paris Agreement.

The International Development Finance Club, Principles for Responsible Investment, Mainstreaming Climate in Financial Institutions initiative, UNEP Finance Initiative, and other financial organizations have released recommendations for the post-2025 climate finance framework at COP29. The coalition's recommendations stress the key role of public development banks in establishing environments that enable large-scale climate investment.

In conclusion, the global coalition's recommendations for the post-2025 climate finance framework at COP29 underscore the urgent need for a transformative shift in global finance towards climate action. The coalition's efforts represent a significant step towards meeting the objectives of the Paris Agreement and aligning financial flows with the Sustainable Development Goals.