TheCityUK, alongside the Investment Association and UK Finance, has submitted a joint response to the United Nations Framework Convention on Climate Change's (UNFCCC) climate finance work programme, setting out priorities to support credible delivery of the New Collective Quantified Goal (NCQG) and to accelerate the scaling of climate finance for developing countries.
Key Messages
Public finance must remain the foundation of the climate finance framework
The work programme should reinforce the central role of public finance from developed countries under Article 9 of the Paris Agreement, with greater emphasis on credibility, predictability and delivery of the NCQG, alongside clearer differentiation between public obligations and complementary sources of finance.
Private finance depends on strong enabling conditions, not abstract mobilisation targets
Private capital can play a complementary role where credible policy frameworks, investible Nationally Determined Contributions (NDCs), strong project pipelines and effective risk‑mitigation and blended finance tools are in place, aligned with country‑led priorities.
Adaptation and resilience finance must be scaled
The work programme should prioritise practical pathways to increase adaptation finance, recognising the central role of public and grant‑based resources alongside insurance and risk‑transfer solutions.
Structured engagement with private finance is needed to support delivery
A formal, standing mechanism for early, technical engagement with a diverse range of private finance actors would support more practical, actionable outcomes—while preserving Party responsibilities and the intergovernmental nature of the UNFCCC process.