As the world nears the tenth anniversary of the Paris Agreement at COP30, countries are preparing to submit new greenhouse gas reduction targets for 2035. These updated Nationally Determined Contributions (NDCs) are expected to reflect higher levels of ambition in tackling climate change. Many nations are also introducing National Transition Plans, outlining how they will finance their climate goals. COP30 will serve as a key moment to evaluate how effectively countries are attracting private investment to support their climate strategies.
Eric Usher, Head of the United Nations Environment Programme Finance Initiative (UNEP FI), noted that these developments present significant opportunities for the financial sector to expand investment in climate solutions. Private sector involvement has grown substantially, with corporations and financial institutions contributing USD 1 trillion in climate finance in 2023—surpassing public funding for the first time. By October 2025, 62 countries had submitted updated NDCs, with some, such as Nepal and Brazil, detailing robust plans to mobilize private capital for climate action.
National Transition Plans are becoming essential tools to make NDCs more attractive to investors. These plans outline policies, regulations, and projects designed to draw private financing and offer clarity on where investments can have the most impact. They highlight opportunities across various sectors through measures such as industrial strategies, carbon pricing, and tax incentives, helping financial institutions identify which initiatives are suitable for commercial or concessional investment.
For banks and investors, understanding National Transition Plans provides a clearer view of how to align financial decisions with national climate goals. The plans promote transparency, reduce investment risks, and create pathways for public-private collaboration. By harmonizing national climate policies with international frameworks, these plans also make cross-border investments in sustainable projects more accessible and efficient.
COP30 will be a defining moment for global finance, offering a platform for financial institutions to identify emerging markets that are advancing toward net-zero and environmental resilience. As countries adopt more ambitious targets for renewable energy, nature protection, and sustainable finance, cooperation between the public and private sectors will be essential to achieving a just and equitable transition.
This article forms part of UNEP FI’s COP30 blog series, which examines key climate negotiation themes influencing the global financial system. The series provides insights for banks, insurers, and investors into how UN climate processes are shaping sustainable finance. As a Non-Party Observer Organization, UNEP FI continues to offer technical expertise to help align financial flows with global climate and sustainability goals.
