Climate policy in 2025: Three themes for investors to look out for 

This year marks the tenth anniversary of the Paris Agreement, with a looming deadline for the next round of country Nationally Determined Contributions (NDCs) and a promised roadmap to address the climate finance gap. We explore how these milestones might offer opportunities for investors.The dust has settled after a pivotal year of elections which saw many incumbents defeated at the ballot box. While this has signalled significant policy shifts away from climate objectives in some nations, the energy transition and decarbonisation of the economy are well underway.In many cases, they are gathering pace.Brazil will play a pivotal role as the host nation for COP30 and will face high expectations. Symbolically, the Rio Earth Summit in 1992 delivered several breakthrough moments, including the launch of the UN Conventions that today administer the climate and biodiversity conferences. Brazil is a core custodian of the Amazon rainforest and a fast-growing, high-emitting market with strong influence in the region.Two recent, high-profile appointments signal strong leadership from the host nation. André Corrêa do Lago, a veteran diplomat and climate negotiator, has been appointed as COP30 President. Ana Toni, the Secretary for Climate Change, Energy and Environment at Brazil’s Ministry of Foreign Affairs, will support him as the COP30 CEO. IIGCC members may recognise Ana Toni, who delivered a speech at our AGM late last year.Some things, however, remain unchanged. Private finance will continue to be at the heart of climate and nature conversations this year, widely recognised as a vital component in achieving the levels of capital required, with much progress still to be made. Investors considering climate and nature-related risks and opportunities in line with their individual strategies can use these moments to engage with policymakers and other key stakeholders.With that in mind, here are three potential areas of policy engagement to consider this year.From Baku to BelémAt COP29, world leaders agreed to a new collective quantified goal on climate finance which fell well short of the funding required by developing countries. As a compromise to resolve intense debate, the current and upcoming Presidencies committed to set out a roadmap to deliver USD 1.3 trillion by 2035, aiming to bridge the estimated USD 1 trillion funding gap.This roadmap is to be presented at COP30 in Belém, but few details have emerged since. To succeed, the roadmap must set out a robust pathway that clearly defines the role of investors and private finance in general. Our open letter ahead of COP29 last year outlined our recommendations in more detail.These recommendations will continue to guide our engagements with policymakers throughout 2025. We will reiterate that the roadmap should consider all sources of capital and all mechanisms to mobilise private finance to meet climate and nature targets.This should include reforms that incentivise private investments in developi