With COP30 in Brazil just around the corner, ING analysts Gerben Hieminga and Coco Zhang have identified three areas of interest for corporate leaders from the annual climate change gathering.
1. Article 6 and carbon markets
Following last year’s COP29 conference in Azerbaijan, countries reached full operationalisation of Article 6 of the Paris Agreement, which enables international carbon trading after years of discussion. This enables both governments and companies to participate in cross-border carbon activities under a clear regulatory framework, with attention now turning to the Article 6 Supervisory Body and its forthcoming updates on methodologies and registry operations.
“This will shape how companies can participate in high-integrity carbon markets, either through compliance or voluntary offsetting,” Hieminga and Zhang note.
“The decisions made at COP30 will influence the credibility, cost, and availability of carbon credits and determine how companies can use them to meet net-zero targets or regulatory obligations, for example, by a clear distinction between credits for carbon reductions and carbon removals.”
2. Climate finance
Climate finance is set to be another key area of discussion at COP30, with previous COPs helping to establish mechanisms that link public and private capital for sustainable projects.
In Belém, discussions are likely to focus on mobilising capital for developing economies through blended finance and sustainable finance.
Blended finance, the use of concessional public funding to de-risk private investment, “is helping corporates scale clean technologies and expand into emerging markets,” the analysts note. “It’s particularly relevant for firms with global supply chains or infrastructure exposure, offering a way to crowd in capital while managing risk. With COP acting as a catalyst and private sector interest growing, blended finance could become more standardised, scalable, and innovative.”
Sustainable finance instruments, meanwhile, which encompasses green bonds, sustainability-linked loans, and transition debt, “continue to be effective tools to raise capital to achieve climate goals,” the analysts note. “Corporates can leverage resources like the Corporate Climate Finance Playbook from COP28 to broaden the use of sustainable finance across diverse business models and sectors.
“In addition, transition debt can also play a bigger role over time in allowing companies to finance decarbonisation without needing to be ‘green’ from day one. It is also crucial for hard-to-abate industries like steel, cement, and aviation to attract more capital to overcome complex decarbonisation challenges.”
Historical trends show that significant COP milestones, such as the creation of GFANZ at COP26, have driven sharp growth in sustainable finance issuance, they add, with similar momentum likely to follow from COP30.
3. Renewables and nature
A third priority for corporate leaders is the need to integrate renewable energy growth with nature restoration, in order to combat biodiversity loss.
While previous COPs have put in place agreements to transition away from fossil fuels, triple global renewable energy capacity by 2030, and halt and reverse biodiversity loss by 2030, many leaders “struggle to integrate energy and nature goals, often treating them as separate pillars within their sustainability strategies,” the ING analysts note.
“Yet, some projects offer a unique opportunity to address both challenges simultaneously. For instance, solar and wind farms can be designed to deliver measurable biodiversity benefits, such as incorporating pollinator-friendly plantings or animal-friendly fencing, at minimal additional cost. Responsibly planned offshore wind farms can create new marine habitats.
“Integrating biodiversity considerations into core energy projects not only bridges these critical sustainability objectives but also elevates nature restoration to a boardroom priority.”
Read the full article, From Belém to the boardroom – what COP30 means for climate leadership, here. [Photo Rafa Neddermeyer/COP30 Amazônia]
