Was COP29 really all doom and gloom?
COP 29 was not the smoothest climate conference in recent memory, but it’s fair to say that on issues of climate change, climate resilience and climate finance, tensions can sometimes run a little hot. But all was not in vain. After some toil, negotiations did reach a fruitful conclusion with a new collective quantified goal on climate finance (NCQG) committed to providing $300bn USD every year and aiming to reach $1.3tn USD by 2035 being agreed. The aim being to support developing nations decarbonise their economies and respond to the effects of the climate crisis.
As one of the only G7 leaders to attend the COP29 negotiations, the UK Prime Minister had an opportunity to position the UK as a global leader in tackling climate change, reiterating the country’s commitment to net zero and leveraging the UK’s influence as a global centre for green finance. In the recently published Transition Finance Market Review report, the UK was confirmed as having significant sustainable finance capacity relative to other markets. The paper highlights just how private capital can stand shoulder to shoulder to support the UK in developing its role as a transition market hub and delivering on climate goals.
Further evidence that shows the strength of the UK private capital is in a recent paper - The UK: A Centre of Excellence in Impact Investing. The BVCA, on behalf of the private capital industry, partnered with the City of London Corporation to demonstrate that the UK is uniquely positioned as a centre for excellence in impact investing, which if supported could allow the rapid scaling of private capital investment into important environmental and transitional industries of the future, whilst ensuring a stable and repeatable model that produces consistent financial returns.
Despite all its criticisms, COP 29 has achieved significant strides towards building the infrastructure to leverage private capital in sustainable investment. The UK especially, alongside many other developed economies are facing a sustained strain on the public purse through a lack of consistent economic growth and overstretched public services. In the all-important transition to a Net Zero green economy, private capital is well placed and has an indispensable role in driving the innovation needed to secure our planet.
Authored by Breeze Haywood
Sustainability Policy Executive, BVCA
