NZAOA, a group of 87 institutional investors managing USD 9.2 trillion in assets committed to achieving net zero across investment portfolios by 2050, welcomes the Summary Note on Presidency consultations and the Eleventh Letter from the Presidency published on 16 and 17 November respectively. NZAOA signatories have supported the UNFCCC Process, including through participating in the Baku to Belém Roadmap to 1.3T process and the Sharm el-Sheikh Dialogue.

Market momentum behind net zero is evident and the economic case for net zero remains strong. By the end of 2024, NZAOA signatories had deployed a total of $743 billion in climate solutions, representing 8% of their total asssets undr management, showing a strong commitment to supporting the transition to a low-carbon economy. Signatories are developing innovative approaches to climate investments, including in emerging markets.

To maintain positive momentum, policymakers gathered at COP should provide roadmaps to ensure that the promises of the 2023 Global Stocktake translate into concrete delivery. These must support mobilising investment, lending, and underwriting decisions, and enable corporate action, strengthening the transition from negotiation to implementation.

NZAOA particularly welcomes action in the areas of:

  • Accelerated NDC Implementation
    Clarity, demand signals, and certainty for investors is critical to ensure financial flows are mobilised. Effective implementation of Nationally Determined Contributions (NDCs) and COP outcomes, underpinned by national policies and transparent reporting, creates clear policy signals and pipelines of investable projects. Their subsequent consistent implementation builds credibility and enables long-term investors to confidently allocate capital.
  • International cooperation and active engagement with private sector
    International cooperation is needed to accelerate implementation and economic transformation. New and innovative approaches are required to unlock finance and support for emerging markets. Asset owners are working to develop attractive financing solutions that meet the needs of different stakeholders. Further acceleration of these successes hinges on collaboration between private and public sectors.
  • Enabling policy environment
    Investors are making progress to account for and manage climate risk, in line with their fiduciary duties, but they are dependent on an enabling policy environment. Supportive policies can contribute to improving the risk and return profiles of investments while also closing value chain gaps. Reforming multilateral architecture remains important to improve financing climate action, including high costs of capital, limited fiscal space, unsustainable debt levels, high transaction costs and conditionalities for accessing climate finance. NZAOA has published expert papers that identify impediments and solutions for private capital mobilisation.

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