Asset owners urge COP leaders to turn net-zero pledges into delivery

The Net-Zero Asset Owner Alliance (NZAOA), representing 87 institutional investors with USD 9.2trn in assets, has called on policymakers at COP to convert global climate commitments into concrete action, warning that investor momentum must be matched by clearer policy roadmaps and stronger national delivery plans.

In a statement welcoming the latest UNFCCC Presidency Summary Note and Letter, the group said market support for net zero “remains strong”. By the end of 2024, signatories had deployed USD 743bn into climate-solutions investments around 8 per cent of total assets, and are increasingly developing innovative approaches to financing the transition, including in emerging markets.

However, the Alliance stressed that maintaining progress requires governments to provide clarity and certainty following the 2023 Global Stocktake. Effective implementation of Nationally Determined Contributions, backed by transparent reporting and predictable national policies, is essential to generate pipelines of investable projects and give long-term investors confidence to allocate capital.

The NZAOA also urged deeper international cooperation and stronger public–private collaboration to unlock finance for emerging markets, and called for reforms to multilateral finance to address high capital costs, limited fiscal space and barriers to accessing climate funds. An enabling policy environment, it said, is crucial for investors striving to manage climate risk and support the transition.

The call comes a week after NZAOA released its progress report, revealing that the number of signatories had dropped from 88 to 87, as Dutch pension fund Pensioensfonds Detailhandel had left the alliance in January. However, 96% of NZAOA members now have set interim targets and investments in climate solutions increased from $555bn at the end of 2023 to $743bn by the end of 2024, marking a 34% increase of commitments to climate solutions.