SFO promotes the role of financial engineering in unlocking private capital for climate action at COP30

The Sustainable Finance Observatory participated in COP30 (10–21 November, Belém) around its President, François Gemenne. We were also present at the COP30 Local Leaders Forum (the “COP of Mayors”) and the Urban Nature Forum, held in Rio de Janeiro ahead of COP30.

We were invited to present the role of financial engineering in unlocking private capital for climate action at eight international events, organised by leading global climate action organisations, including the COP30 Presidency, UNEP, GlobalABC, ICLEI, the Global Covenant of Mayors (GCoM), Regions4, Natural Resources Defense Council, Atlantic Council, Nature4Climate, Climate-KIC, and others (see press release). 

The UNFCCC and the IMF estimate that achieving the Paris Agreement and the Sustainable Development Goals will require 70–90% of financing to come from the private sector. Our work on financial engineering focuses on developing bankability models and applying financial structuring to improve the risk–return profile of projects and unlock private capital at scale. This is achieved by making more strategic use of scarce concessional public finance and increasing its leverage effect. 

At COP30, our presentations, dialogues and partnership discussions focused in particular on three critical areas for mitigation and adaptation:

• energy-efficient building renovation;
• cities and regions; and
• adaptation and biodiversity.