The challenge

The world is in urgent need of an equitable transition to net zero. Governments have made progress toward this goal, including adopting the Glasgow Climate Pact, signing the Global Methane Pledge to reduce methane emissions, pledging to end deforestation by 2030, and enhancing their Nationally Determined Contributions (NDCs). However, significant geopolitical headwinds — the war in Ukraine, the energy crisis, inflation pressures, and tight supply chains — threaten to delay or derail efforts to cut emissions. There is a need for more governments to set out the specific steps they plan to take nationally while working together to establish global policy frameworks that correct existing market failures and enable action at scale. GFANZ is supporting policy innovation and sharing successes and best practices that can create an enabling environment for private-sector finance.