The annual gathering of governments, private sector and civil society will now take place in Madrid, Spain between 2 and 13 December to further action on climate change and implement the promises that were made under the Paris Climate Agreement. Find out what UNEP FI is doing at COP25 to bring the latest climate commitments made by UNEP FI members to the attention of policymakers. UNEP FI members can attend many of the events – check out the list below and get in touch if you have questions about accreditation.

During the UN Secretary General’s 2019 Climate Action Summit, UNEP FI launched two high-ambition initiatives that will be key drivers of finance sector action on climate change in the coming years. 33 of the banks who signed the new Principles for Responsible Banking also launched a collective commitment to climate action, and 12 very large institutional investors unveiled the UN-convened Net-Zero Asset Owner Alliance.

With these two pledges, financial heavyweights like Allianz, SwissRe, Calpers, Societe Generale, BBVA, as well as institutions from Latin America such as BFA and Produbanco are committing to fully align their financial portfolios with the mitigation objectives of the Paris Agreement with intermediate targets every 5 years.

These groups are a natural response to the now established recognition that more sophisticated management of climate-related risks and a more systematic disclosure of such risks by financial institutions might actually not lead to a ‘greening’ of these institutions’ practices. In fact, the contrary could conceivably be the case. UNEP FI is therefore now advocating for an evolution from a risk-based narrative in climate finance towards a norms-based one. This narrative will emphasise (measurable and traceable) outcomes and impacts as opposed to procedural aspects of financial institutions’ behaviour. The two initiatives are a first credible indication of the success of this advocacy.

At COP25, UNEP FI will be bringing the new ambition in climate change action born at the Climate Action Summit in New York to the attention of governments worldwide, building on our dialogue with the Coalition of Finance Ministries on Climate Action and reaching out to other parts of society to encourage more ambitious action.

As financial institutions move beyond an approach to climate change finance that is purely risk-based and towards an approach that is also normative, and focused on environmental outcomes and impacts, banks, insurers and investors will have to turn their attention to their business models, and ensure their portfolios are not only compatible with but also enable the climate mitigation objectives of the Paris Agreement.

This new ambition will require combining the financing of the decarbonization of the economy – to prevent the worst form of climate change – with financing the adaptation of socio-economic systems to the climate change that cannot be mitigated.

UNEP FI is implementing this new ambition through three platforms: the two afore-mentioned initiatives with banks and asset owners, and our adaptation work which cuts across all financial industries. Read more about our platform on adaptation here.

UNEP FI at COP25

For more information on these events and to find out if you can get accreditation through UNEP FI email climate@unepfi.org.

Find out more about COP25 here.