As the world turns its attention to Belém, Brazil, host of COP30, the spotlight of the summit inevitably falls on financing. Climate action cannot rely solely on public or philanthropic initiatives; it requires the scale, efficiency, and momentum of the private sector. Yet a critical gap remains—one that was already highlighted at last year’s COP in Baku. There, key agreements were reached to mobilize USD 1.3 trillion annually in climate finance through 2035 (the so-called “Baku to Belém Roadmap”), with a strong emphasis on supporting the most vulnerable countries.
That roadmap was presented as a turning point, but the reality is that without clear execution mechanisms and genuine participation from the private sector, these commitments risk becoming unfulfilled promises. The recent World Economic Forum report, “From Risk to Reward: Unlocking Private Capital for Climate and Growth”, developed by the World Economic Forum and KPMG, serves as a reminder of exactly that: public finance is insufficient, and the narrative must shift toward investment opportunity.
The biggest challenge lies in Emerging Markets and Developing Economies (EMDEs)—the regions most vulnerable to climate change but also those with the greatest potential for transformational green growth. According to the report, EMDEs need USD 2.4 trillion annually through 2030, of which USD 1 trillion should come from private sources.
However, international private finance flowing to these countries reached only USD 36 billion in 2023, meaning it must increase 28-fold to meet climate objectives.
If the potential is so great, why isn’t capital flowing? The investment gap stems largely from the perception of high risk in these markets: political uncertainty, unstable regulatory frameworks, and lack of reliable data. Yet despite these challenges, the opportunities are substantial — from renewable energy to resilient infrastructure and nature-based solutions.
The report proposes that companies, investors and development banks (MDBs) concentrate their efforts on six strategic areas to turn risks into tangible opportunities:
The focus must shift from intention to design. Multilateral Development Banks (MDBs) and donors should prioritize technical assistance to structure projects with clear business models, reducing development time and uncertainty for private investors.
A global standardization of climate data and the creation of national platforms offering reliable information on investment performance are needed. Better data reduces perceived risk.
One key way to mitigate risk is to attract local institutional investors (pension funds, insurers). This can be achieved through credit guarantees and financial instruments tailored to provide greater stability in domestic markets.
Blended finance—which combines public and private capital—must become scalable. This requires standardized first-loss capital and climate insurance instruments to protect private investment from early-stage risks.
Governments must translate their Nationally Determined Contributions (NDCs) into clear, long-term investment roadmaps. Regulatory predictability is the anchor private capital needs for large infrastructure commitments.
Venture capital, particularly through platform vehicles, is vital for early-stage project development and for building entire markets (e.g., green hydrogen or carbon capture). This enables the aggregation of assets that can scale over time.
These priorities translate into 16 practical steps, including the creation of regional climate-finance hubs, the expansion of blended-finance vehicles, and the strengthening of carbon markets under Article 6 of the Paris Agreement.
The report makes one point clear: the conversation about climate finance can no longer be limited to political commitments or solemn declarations at global summits.
This requires a narrative shift: moving from seeing climate finance as a cost to understanding it as a strategic investment in sustainable growth. In the context of COP30 —and reflecting on the commitments made in Baku— the message is unmistakable: transforming climate risk into investment opportunity is the only way to meet global goals.
The question that remains is whether the international community is ready to move from promises to real action.
Negotiations are expected to focus on the concrete implementation of financial commitments: how funds will be allocated, what transparency mechanisms will be applied, and the role developed countries will play in ensuring resources effectively reach the most vulnerable. It will be a decisive moment to determine whether the international community is willing to move from promises to action — and whether the opportunity-driven narrative presented in the report translates into tangible agreements that mark a turning point in global climate finance.
By Teresa Royo, Partner in Sustainability and Good Governance, KPMG Spain
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