Stephanie Pfeifer, the CEO of the Institutional Investors Group on Climate Change (IIGCC), has published an open letter expressing unwavering support for an ambitious New Collective Quantified Goal (NCQG) on climate finance. In her letter, Pfeifer outlines key recommendations, including the critical recognition of the private sector's pivotal role in addressing the climate crisis.

Mobilizing Private Capital to Deliver a Net-Zero Future

Investors Eager to Unlock Opportunities Across Developed and Developing Nations

Many investors have identified lucrative investment opportunities in both developed and developing countries, and they stand ready to collaborate with policymakers to unlock the necessary financing to deliver a net-zero and climate-resilient world by 2050. This represents a significant shift in the investment landscape, as investors increasingly recognize the long-term systemic risks posed by climate change to global financial stability, which is directly relevant to their fiduciary duty.

Lessons from the $100 Billion Goal: Addressing the Climate Finance Gap

Drawing lessons from the $100 billion goal, it is clear that insufficient financial resources pose a substantial risk to the ambition and implementation of Nationally Determined Contributions (NDCs), potentially further delaying global climate action. This poses long-term systemic risks to global financial stability, a concern that is directly relevant to investors' fiduciary duty.To address the climate finance gap in developing countries, many global investors are actively exploring innovative ways to unlock and mobilize capital. An ambitious finance goal that includes private capital can encourage greater ambition in developing countries' NDC targets by building confidence in accessible funding for both mitigation and adaptation efforts, with the latter historically being underfunded.

The NCQG: Uniting the Financial System for Climate Action

The NCQG can serve as a powerful tool to bring all parts of the financial system together, sending strong political signals, including a clear recognition of the private sector's pivotal role. This recognition can catalyze greater collaboration between policymakers and investors, unlocking the necessary resources to drive the global transition to a low-carbon, climate-resilient future.Investors are eager to work alongside policymakers to develop innovative financing solutions and unlock the trillions of dollars needed to achieve the Paris Agreement's goals. By acknowledging the private sector's capabilities and aligning incentives, the NCQG can serve as a catalyst for unprecedented levels of climate finance, ultimately accelerating the global transition to a sustainable and prosperous future.