Private investment seen as key to reach climate goals

Mobilizing private investment will be essential for developing countries, including in Latin America, as they prepare to present updated climate goals as part of their nationally determined contributions (NDC) under the Paris agreement. 

“Public policy can mobilize private investment,” Ani Dasgupta, CEO of non-profit World Resources Institute (WRI), said during a webinar.

Although the formal deadline for submitting updated NDCs is next month, WRI expects some countries to delay their announcements until the lead-up to the COP30 climate conference, which will take place from November 10 to November 21 in Brazil.

Brazil and Uruguay submitted updated NDCs in November and December 2024, respectively. 

Meanwhile, Ecuador’s climate change committee approved a new NDC last week, though it has yet to be formally submitted to climate body UNFCCC.

Dasgupta highlighted India as an example of how developing countries can attract private investment for climate-related projects. In 2024, India secured US$2.4bn for green energy and technology initiatives.

He said that India's government set clear sector targets aligned with its NDC and introduced supportive policies at both the national and state levels to encourage private sector participation.

Additionally, both the government and commercial banks launched financial instruments to facilitate investment, making funding more accessible and efficient.

However, Dasgupta emphasized that the most critical factor was India’s significant increase in public investment, which in turn boosted private sector confidence.

“While few countries will have this kind of firepower at their disposal, the lesson of setting clear ambitions and backing them with strong public policy and public finance is relevant anywhere,” he said. 

Last year’s COP summit ended with a new climate finance target of US$1.3tn per year.