The Institutional Investors Group on Climate Change (IIGCC) has called for countries to develop long-term, industry-specific decarbonisation road maps, which could play a crucial role in attracting increased private investment in the transition to net-zero emissions.
Countries that are signatories to the Paris Agreement are required to submit their emissions reduction plans, known as nationally determined contributions (NDCs), every five years. However, the IIGCC has urged these countries to make their NDCs more “investible” to ensure sustainable financing for climate commitments.
The IIGCC suggests that robust, long-term strategic plans that focus on decarbonising key sectors within a country’s economy would be essential to achieve this. To be effective, these road maps should be credible, decision-useful, and clearly outline how government policy supports sector-specific decarbonisation efforts. Importantly, they should also be accompanied by financing mechanisms.
To meet these criteria, the report stresses that the road maps should:
- Be evidence-based, outlining clear, time-bound actions for stakeholders.
- Provide clarityon government policies, including an overview of the existing and future policy mix, and address barriers such as regulatory, policy, and market challenges.
- Include a detailed financing mechanismthat assesses the total investment needed for decarbonisation, along with current and anticipated financial flows from both public and private sectors.
The IIGCC argues that such comprehensive, sector-specific road maps would offer greater policy certainty and stability, enabling investors to feel more confident in making long-term investments across crucial economic sectors.
The deadline for Paris Agreement signatories to submit their updated 2035 NDCs was February 10, but only 12 countries met this deadline. UN Framework Convention on Climate Change executive secretary Simon Stiell has called for countries to aim for a September submission date, allowing extra time to ensure their plans are well-developed and of the highest quality.
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