The COP29 Business, Investment, and Philanthropy Climate Platform (BIPCP) took place recently, convening over 1,000 business, finance, and philanthropic leaders to discuss the active role the private sector needs to play in addressing climate change.
One key highlight of the event was the announcement from investor groups with over $10 trillion in assets that they will unite to develop a shared vision and action plan to accelerate the deployment of private capital into climate markets.
UN Climate Change High-Level Champion Nigar Arpadarai reinforced the importance of fostering inclusive ecosystems for the private sector to support the climate agenda. “We need to create an ecosystem for businesses that will make the climate change agenda not only ambitious and mandatory but also practical and achievable. Such a system should encompass more than a few corporations in the developed world and must reach beyond the usual suspects,” he stated.
Financing tangible climate action
In the opening days of COP29, there has also been significant progress on Article 6 and the NCQG. Outside the negotiations, the COP29 presidency is providing the platform for other actors to step up and contribute. Finance, Investment and Trade Day saw representatives from the private sector, multilateral development banks and philanthropic organizations, climate funds, international organizations, and civil society come together in a collective effort to finance tangible climate action.
Commenting on developments, COP29 president Mukhtar Babayev said: “The COP29 presidency’s plan is based on two pillars. To enhance ambition and enable action. This means setting out clear climate plans and delivering the finance we need. As we mobilize climate finance, we allow for higher ambitions and as we signal higher ambition, we build trust to unlock greater financial commitments.”
Major contributions to climate projects
During COP29, the Asian Development Bank (ADB) launched a new regional program to promote sustainable water use and food security in Central Asia, the South Caucasus, and Pakistan amid the catastrophic impacts of melting glaciers. With support from the Green Climate Fund (GCF), ADB will conduct glacier risk assessments in Azerbaijan, the Kyrgyz Republic, Tajikistan and Uzbekistan.
These will form the scientific and technical basis for the program — called Glaciers to Farms — which targets mobilizing up to $3.5 billion from a range of actors including ADB, GCF, other development partners, and the private sector. In addition to water and agriculture investments, the program will support vulnerable communities threatened by glacial melt, particularly in fragile mountain regions.
In addition, Zakir Nuriyev, president of the Azerbaijan Banks Association, on behalf of the banking sector of Azerbaijan, announced details of a pledge that will allocate $1.2 billion for the development of green and sustainable projects in Azerbaijan until 2030.
The funds will support projects contributing to Azerbaijan’s transition to a low-carbon economy. This follows the Central Bank of Azerbaijan introducing a new green taxonomy to guide sustainable investments.
Sweden contributes $730 million to UN Green Climate Fund
During COP29, Sweden also announced a contribution of $730 million to the UN Green Climate Fund (GCF). This will support low- and middle-income countries to invest in adaptation measures to protect their societies against climate change. The funding will also support investment in climate initiatives to reduce emissions. This brings Sweden’s overall contribution at COP29 to $749 million following the €19 million it contributed to the Fund for Loss and Damage earlier this week.
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Baku Initiative for Climate Finance, Investment and Trade Dialogue
Past, present, and future COP presidencies also endorsed the COP29 Baku Initiative for Climate Finance, Investment and Trade (BICFIT) Dialogue. In creating BICFIT, the COP29 presidency has also brought together UNCTAD, the UNDP, the World Trade Organization (WTO), the International Trade Center (ITC), multilateral development banks, and multilateral climate funds.
“The launch of the Baku Initiative for Climate Finance, Investment and Trade (BICFIT) and hosting the Business, Investment, and Philanthropy Climate Platform (BIPCP) represent our strong commitment to bringing critical partners together to accelerate ambitious climate action,” he added.
BICFIT will guarantee that finance, investment, and trade sit at the center of the climate change agenda by ensuring alignment, continuity, and delivery across discussions, actions, and initiatives between previous and future COPs in support of the UNFCCC and the Paris Agreement.
“Developing countries will need $1.1 trillion annually in climate finance by 2025, with $900 billion expected from external sources. This initiative enables us to align trade, investment, and finance with climate goals, bringing stakeholders together to ensure these three drivers work in concert. Better coordination will lower the overall cost of a just transition, leveraging shared strengths and minimizing conflicts between climate policies and sustainable development,” stated Rebeca Gryspan, UNCTAD Secretary General and co-leader of the BICFIT Dialogue initiative.
The BICFIT Dialogue will incorporate existing global initiatives such as the Glasgow Financial Alliance for Net Zero (GFANZ), the Coalition of Finance Ministers for Climate Action, the Coalition of Trade Ministers on Climate, the Climate FDI Coalition, and the newly initiated Baku Global Coalition for SMEs Green Transition, to align climate finance, investment, and trade with sustainable development priorities.
