The United Nations Development Programme’s (UNDP) Financial Centres for Sustainability (FC4S) introduced the 1.5° Partnership for Action on Climate Transition (PACT) programme at COP29’s Finance Day, aiming to mobilise financial institutions to support Nationally Determined Contributions (NDCs) that align with the 1.5°C target. This initiative highlights the critical need to accelerate climate action by engaging financial centres and institutions in advancing sustainable investments and reinforcing national climate strategies.
The PACT programme will leverage local financial centres, including FC4S members, to foster collaboration between financial institutions and governments. By utilising existing relationships and data, PACT aims to align financial institutions’ strategies with NDC targets, thereby enhancing sustainable investment pathways. The initiative is designed to bolster climate resilience through advanced tools and collaborative frameworks, ensuring transparent and impactful transition finance strategies that support both national and global climate goals.
Marcos Neto, UN Assistant Secretary-General and Director of UNDP’s Bureau of Policy and Programme Support said, “With the launch of FC4S 1.5° P.A.C.T., 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.”
The FC4S PACT initiative focuses on several core elements. These include a ‘Transition Finance Review’, which assesses the readiness of financial centres to support climate transitions, and ‘NDC Target Analysis’, which identifies gaps in private sector commitments and provides actionable policy insights. Additionally, the programme will develop ‘Financial Centre Transition Finance Plans’, comprising milestone-based roadmaps and a tracking dashboard, to guide financial centres in achieving NDC targets. A key component is the ‘Forum for Action on Climate Transition (FACT)’, a platform to share best practices and foster collaboration with global policy forums, such as the G20, G7, ASEAN, and the Coalition of Finance Ministers for Climate Action.
By aligning financial institutions with NDCs, the 1.5° PACT programme seeks to catalyse significant progress in achieving climate goals while reinforcing the vital role of financial centres in driving sustainable development globally.
Oscar Njuguna, Group’s Director, Sustainability at The Equity Bank and FC4S Co-chair said, “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.”
