COP30 in Belém: Turning climate promises into action amid mixed progress

COP30 was more than just another climate summit. Held in Belém, the gateway to the Amazon, the conference raised nature and adaptation finance up the agenda, while highlighting the indispensable role of indigenous peoples in safeguarding biodiversity. It came at a strategically important moment for global climate action. Ten years after the Paris Agreement, the urgency to move from pledges to implementation has never been greater.

Against a backdrop of geopolitical tension and fragile multilateralism, the affirmation by 194 nations that “the global transition to low greenhouse gas emissions and climate resilience is irreversible” was a powerful signal. For investors, this matters because climate change and nature loss are systemic risks that can directly impact long-term value creation and societal outcomes.

At L&G, we believe that statements alone are insufficient – action is what counts. While COP30 delivered mixed results and fell short of scientific and investor expectations, it provided important signals and platforms for progress. For us, three themes stood out.

First, climate adaptation and resilience are critical priorities. Physical climate risk is no longer theoretical; it is a material investment issue. That is why we work to help mitigate these risks to our investments through the actions we take to seek to build resilience across our real estate and infrastructure assets and our broader portfolio holdings. COP30 introduced new targets for adaptation finance and agreed indicators to measure resilience. These steps were incremental and lacked clarity on capital sources, but they represent a foundation to build upon.

Second, forests remain a key part of the climate and nature challenge. Despite strong backing from over 90 countries, a binding roadmap to end deforestation did not materialise. This was disappointing, but it will not deter us from continuing to push for deforestation-free supply chains and forest protection. The launch of the Tropical Forest Forever Facility (TFFF), with its ambition to mobilise $125 billion in blended finance, offered an innovative mechanism to make standing tropical forests economically viable and reward countries for conservation, but it has yet to receive sufficient pledged sponsor capital; we will be watching developments with interest.

Finally, climate finance remains a critical gap. The Baku-to-Belem Roadmap to support scaling of climate finance for developing countries to $1.3trillion per year by 2035 received only passing mention in the final agreement, without a clear pathway for scaling capital. This was a missed opportunity, given the private sector’s role in mobilising funds. However, we know that when it comes to scaling up blended finance, solutions are possible with dedicated and innovative thinking. We have already committed over $1.1bn in private debt financing for nature conservation and sustainable development in emerging economies. Through our participation in the EMDE Investor Taskforce we will continue to support further efforts to help mobilise private capital into climate and nature solutions.

COP30 reminds us that global progress can be slow. However, the direction of travel is clear, and we believe that ultimately a transition to a low-carbon, climate-resilient economy is irreversible. Investors have the ability – and responsibility – to act now.

At L&G, we will continue to turn intent into impact through our investments and through the stewardship of our clients’ assets. By investing for the long term, we can help deliver systemic change for planetary health and sustainable value creation. 

While L&G has integrated Environmental, Social, and Governance (ESG) considerations into its investment decision-making and stewardship practices, this does not guarantee the achievement of responsible investing goals within funds that do not include specific ESG goals within their objectives.