In 2024 the Brazilian G20 Presidency invited UNDP to submit an input paper for the G20 Task Force for the Global Mobilization against Climate Change (TF-Clima), "Integrated National Financing Frameworks as an Instrument to Finance Nationally Determined Contributions." This document emphasizes the role of INFFs for countries to meet their climate commitments under the Paris Agreement by aligning national financing strategies with climate goals and leveraging both public and private sector investments. The headline messages include:
- Nationally Determined Contributions (NDCs), as sovereign and politically-backed pledges of climate ambition and national development priorities, are a powerful tool and the primary vehicle behind which the international community should align its support to promote economy-wide transitions toward the goals of the Paris Agreement.
- The second round of NDCs submitted in 2020-21 saw ambition collectively rise to a trajectory that would limit global warming to around 2.5°C. The 3rd round to be submitted ahead of COP30 in 2025 must set a path to a 1.5°C warming trajectory.
- Finance is crucial for both increasing climate ambition and turning that ambition to reality, given countries want to see tangible progress toward investment in existing targets before extending them further. Achieving a 1.5°C trajectory requires mobilising, leveraging, and aligning investment from public, private, domestic and international sources with climate priorities.
- Through their INFFs countries are catalysing reform in financing policies for national development plans which are demonstrating tangible progress in unlocking and aligning public and private finance for the SDGs.
- Recognizing the substantial role of the private sector, INFFs systematically integrate private finance within their institutional, regulatory and policy reforms to align private finance with NDCs, while ensuring incentive frameworks conducive to leveraging private investment for climate action and entrepreneurship consistent with NDCs.
- This would support the strong political push around the 3rd round of NDCs and be a strong outcome of FfD4.
- Country platforms supported by MDBs and other international partners have a crucial role to play in the supply side of finance, scaling up and improving the quality, alignment and coordination of support to mobilize capital for transition projects and programming.
- The opportunity is for country platforms to respond to and reinforce the sovereign priorities that countries articulate through their NDCs and INFFs, maximizing alignment, effectiveness and synergies, rather than working on parallel or supply-led tracks that undermine country-led efforts.
- As national and global communities, we must use and ensure the effectiveness of the existing frameworks that we have at our disposal if we are to meet the urgency of the challenge that climate change represents.
- Ambitious NDCs that set a pathway to a 1.5°C trajectory, underpinned by financing priorities articulated through INFFs, must be central to collective efforts to address the climate crisis and achieve the SDGs.
- As the forum in which country platforms were first introduced, and in line with the G20 Framework of support to INFFs, the G20 is well placed to drive scaled up support for such an approach and ensure that efforts are coordinated, aligned and effective.