Private Capital Holds Key to accelerated Climate Action, Experts Say
NEW YORK – Discussions at UN Climate Week in New York centered on leveraging lessons from past transitions to ensure an equitable and effective response to climate change, with a growing consensus that unlocking private finance is paramount. A new focus on achievable national strategies, exemplified by Brazil‘s innovative financial instruments, is seen as critical to turning climate ambition into tangible action.
Experts point to Brazil’s National Bank for Economic and Social Development as a leader in attracting private capital, as highlighted in a recent joint report by the OECD and the UN Development Program. Concurrently, emerging markets across Asia, the Middle East, and Africa are rapidly expanding wind and solar power capacity, with India projected to become the world’s second-largest renewable-energy market by 2030, following China. Inclusive growth, ensuring access to energy and infrastructure, is described as a socioeconomic imperative for these developing nations.
Developed economies, however, face distinct hurdles. In the United States, approximately 40% of energy and technology projects initiated under President Joe Biden’s industrial and climate policies were already experiencing delays prior to the recent change in governance, according to reports. The United Kingdom’s net-zero transition is threatened by rising energy costs, while European manufacturers grapple with maintaining profitability amidst increasing competition from Chinese firms while reducing CO2 emissions.
Despite these challenges, cautious optimism prevails. Even with the US withdrawal from the Paris Agreement under former President Donald Trump, energy affordability and maintaining competitiveness in artificial intelligence remain key national priorities. institutional investors and private capital are positioned to support emerging technologies, including scalable nuclear energy, that can sustain AI growth without escalating utility costs.
The upcoming COP30 in Brazil presents a crucial possibility to bridge the gap between governments, financial institutions, civil society, and the private sector. A collaborative approach focused on workers, communities, and consumers is essential to translate national targets into meaningful progress for both peopel and the planet.
