UNDP launches new global initiative to align financial centres with climate goals in NDCs

UNDP’s Financial Centres for Sustainability (FC4S) launched its 1.5° Partnership for Action on Climate Transition (PACT) programme during Finance Day at COP29 today to mobilize financial institutions in supporting Nationally Determined Contributions (NDCs) aligned with the 1.5°C target.

In response to the growing urgency of the climate crisis, UNDP’s FC4S will work towards driving climate action by mobilizing financial institutions to actively support the development and implementation of NDCs aligned with the 1.5°C target. PACT will work through local financial centres, including FC4S members, by leveraging existing relationships and data to facilitate dialogue between financial institutions and governments. By aligning the strategies of financial institutions with NDC targets, FC4S PACT will reinforce sustainable investment pathways and strengthen national climate action plans.

Marcos Neto, UN Assistant Secretary-General and Director of UNDP’s Bureau of Policy and Programme Support stated, “With the launch of FC4S 1.5° PACT, we’re empowering financial centres to turn ambitious climate commitments into measurable progress. This programme will provide financial institutions with advanced tools and collaborative frameworks essential for impactful and transparent transition finance strategies aligned with national and global climate goals.”

Core Elements of FC4S PACT:

• Transition Finance Review: Providing a comprehensive assessment of the current state of transition finance at the financial centre level.
• NDC Target Analysis: Assessing the alignment of private sector commitments with NDC targets, identifying gaps, and providing actionable insights for policy reforms.
• Financial Centre Transition Finance Plans: Developing a Milestone-Based Roadmap and Finance Tracker/Dashboard to support financial centres in achieving NDC targets and facilitating climate transition.
• Forum for Action on Climate Transition (FACT): A platform to share best practices, linked with international policy cooperation forums such as the G20, G7, APEC, ASEAN, UNDP SIF, and the Coalition of Finance Ministers for Climate Action.

Oscar Njuguna, Group’s Director, Sustainability at The Equity Bank and FC4S Co-chair, stated, “We are excited to launch FC4S 1.5° PACT, bringing together the frameworks, data, and partnerships needed to empower institutions with credible transition strategies aligned with the NDCs. FC4S is committed to driving not just progress but also purpose, through equipping the financial sector with the tools to create solutions that integrate climate resilience into sustainable economic growth.”

FC4S 1.5° PACT is further strengthened by the support of key partners, including KPMG. Mike Hayes, Global Climate and Decarbonization Leader, KPMG added, “This initiative has our full support as it will help to address one of the critical issues on the climate agenda which is to create alignment between national level corporate transition plans and country NDCs. This is about creating a new dynamic using financial centres which will increase both corporate and country level ambition and action.”