UNDP Launches 1.5° PACT Programme at COP29 to Mobilize Financial Institutions in Support of Climate Transition and NDCs

Financial Centres for Sustainability (FC4S) Introduces New Programme to Align Financial Sector with 1.5°C Climate Target and National Climate Action Plans.

In a significant move to accelerate global climate action, the UN Development Programme (UNDP) launched the 1.5° Partnership for Action on Climate Transition (PACT) programme during Finance Day at COP29. This new initiative aims to mobilize financial institutions to actively contribute to the achievement of Nationally Determined Contributions (NDCs) that align with the 1.5°C global temperature target outlined in the Paris Agreement.

The climate crisis has prompted an urgent call for coordinated action, and UNDP’s Financial Centres for Sustainability (FC4S) is responding by spearheading efforts to drive climate finance. The 1.5° PACT programme will leverage financial centres across the globe, particularly FC4S members, to bridge the gap between financial institutions and governments. The programme seeks to align financial sector strategies with the objectives of NDCs, ensuring that financial institutions play a crucial role in both funding and facilitating the climate transition.

Marcos Neto, UN Assistant Secretary-General and Director of UNDP’s Bureau of Policy and Programme Support, emphasized the importance of this initiative, saying, “With the launch of FC4S 1.5° P.A.C.T., we’re empowering financial centers 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.”

The FC4S 1.5° PACT programme is structured around several key components designed to drive actionable climate finance outcomes:

Transition Finance Review: A comprehensive assessment of the current state of transition finance, focusing on how well financial centres are supporting the transition to a low-carbon economy.

NDC Target Analysis: Evaluating the alignment between private sector commitments and national climate targets, identifying gaps, and offering actionable recommendations for policy reforms that can strengthen financial contributions to NDCs.

Financial Centre Transition Finance Plans: Developing detailed, milestone-based roadmaps and finance tracking dashboards to help financial centres achieve NDC targets and manage the climate transition effectively.

Forum for Action on Climate Transition (FACT): A platform for collaboration and knowledge-sharing, linking financial centres with key international policy cooperation forums such as the G20, G7, APEC, ASEAN, UNDP’s Sustainable Investment Facility (SIF), and the Coalition of Finance Ministers for Climate Action. This will ensure that global best practices in transition finance are shared and scaled across the financial sector.

Oscar Njuguna, Group Director of Sustainability at Equity Bank and FC4S Co-chair, highlighted the value of this initiative, stating, “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.”

The programme’s launch at COP29 underscores the critical role of financial institutions in driving the global climate transition. By aligning financial strategies with national climate goals and making targeted investments, financial institutions can play a pivotal role in meeting the world’s climate targets and fostering a more sustainable, resilient global economy.

As part of the broader UNDP agenda, FC4S will continue to collaborate with governments, financial institutions, and other stakeholders to build the necessary infrastructure and frameworks for transparent, efficient climate transition finance. The success of the 1.5° PACT programme is seen as a key milestone in the global effort to address climate change and transition towards a sustainable future.