Dubbed the "Finance COP," this year’s summit focuses on a central question—how to deliver more and better climate finance to the countries and communities that need it most urgently.
At COP28, we sent a clear message: the capital needed for climate action is there; it just needs to be unlocked. The launch of the SDG Loan Fund—a $1.1 billion collaboration with the McArthur Foundation, Skandia, and Allianz Global Investors—marked a bold first step, showcasing how we can mobilize resources and create a structure to unlock pension and insurance capital for Sustainable Development Goals (SDG) investments in emerging markets. We have already put part of the capital to work and will continue deploying it where it can have the most impact.
To achieve this, we’re strengthening partnerships with local banks, recognizing that they offer the dual advantages of solid returns and manageable risk, which are essential for institutional investors. But it’s about more than just financial returns—local financial institutions are uniquely positioned to finance the projects that will drive tangible climate action on the ground.
This approach is timely, as a recent World Bank report highlights a significant gap in green financing among banks in emerging markets and developing economies (EMDEs). Nearly 60% of these banks dedicate less than 5% of their lending to climate-related investments, and over a quarter do not offer any climate financing options. Expanding their role in climate-related investments would allow these banks to tap into a growing market while contributing to economic stability and sustainable development in regions most vulnerable to climate change.
Financial institutions in EMDEs have a unique advantage: with their local knowledge and reach, they can direct capital toward sustainable projects that benefit the economy and environment. For example, they can provide loans to support solar panel installations or enhance energy efficiency in local businesses and households. This includes financing projects like replacing outdated office heating systems or converting traditional irrigation systems to drip irrigation in agriculture. Such initiatives foster a greener economy and help banks build more resilient and diverse portfolios better equipped to handle climate risks.
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Michael Jongeneel, CEO | 11 - 14 November |
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Jorim Schraven, Director Impact | 12 - 14 November |
| Date/Time | Event | Location | FMO representative |
| 12 November | 17:00 - 18:00 | COP/ Bangladesh Netherlands Round table on access to finance to small scale farmers | Bangladesh Pavilion | Jorim Schraven |
| 14 November | 12:00 - 12.30 | Signing event Bank Respublika (Azerbaijan) | Water Conference Room, Green zone | Michael Jongeneel |
| 14 November |09:00-10:30 | Keynote speech: Leveraging science to finance solutions for sustainable food systems | Food & Agriculture Pavilion, F9, Blue zone | Michael Jongeneel |
| 14 November | 14:00-17:00 (15:34 - 16:05 on panel) | ADB - Model Forest Act Initiative - Solving the Forest Finance Puzzle in the Paris Agreement Era | Forest Pavilion within the SDG pavilion | Michael Jongeneel |
| 14 November | 16:00 - 17:00 | Financing resilient futures for smallholder farmers | Food System Pavilion | Jorim Schraven |
As a development bank, we do more than just provide financing—we help our clients and investors integrate green practices and considerations into their operations. Here are some of the resources we offer:
| Climate Investing Playbook | With British International Investment (BII), we have created this playbook that provides a holistic picture of climate finance: what it is, why it matters, and how to invest in climate solutions. It focuses on all kinds of climate impacts – from avoiding greenhouse gas emissions to supporting communities in preparing and responding to the adverse effects of climate change. It explains the steps an investor can take to integrate climate finance into the investment process and identify and assess impact. We’ve also ensured it aligns with critical international climate investment frameworks. At FMO and BII, driving clean, inclusive, and climate-resilient growth in the countries where we invest is a key priority. |
| Joint Impact Model | The JIM toolkit enables financial institutions to measure and disclose portfolio greenhouse gas (GHG) emissions, economic value added, and indirect job support. It also assesses portfolio climate risk across multiple physical hazards. |
| Financing forests | This article provides an overview of resources and blogs aimed at expanding knowledge about forestry investments and engaging a broader range of investors in the sector. These resources are developed by the Learning, Convening & Influencing Platform of Mobilising Finance for Forests, a blended finance solution managed by FMO on behalf of the UK government. |
| An ESG Tool for financial institutions and MSME banks | Our ready-to-use tool empowers financial institutions with the support, guidance, and advice needed to manage ESG risks related to their business activities. |
To underscore the crucial role of financial institutions in advancing climate action, we are signing a $40 million green loan in local currency with Azerbaijani Bank Respublika —its first green loan. This loan will enable the bank to finance local sustainable initiatives exclusively, setting an example of how local banks can lead the way in green finance.
By nature, banks are in close contact to all sectors of an economy. They also have the power to force change through their client base. Sudameris has been actively supporting green investments that align with FMO's green lending criteria, focusing on areas like energy efficiency and renewable energy. As a founding member of the Paraguayan Sustainable Finance Roundtable, 'Mesa de Finanzas Sostenibles,' Sudameris has worked with partners like WWF, IDB Invest, UNDP, and Paraguayan government agencies to develop sector-specific guidelines for cattle, agriculture, and agro-industry. Today, most banks in Paraguay have joined the Mesa de Finanzas Sostenibles and are committed to integrating these Sustainable Finance Guidelines into their risk management and investment practices.
31/10 - Dutch daily Trouw: Why is the climate summit in oil-spewing Baku? Extensive analysis on the upcoming COP29 in Azerbaijan. While some find it hypocritical to host 'a climate conference in an oil state', a Dutch delegation member highlights that the summit could actually boost Azerbaijan's climate and energy goals. The article mentions that FMO will issue the first ‘green loan’ to Azerbaijan at the conference. Read more (Dutch only)
7/11 - Dutch press agency ANP: FMO will provide a $40 million green loan to Bank Respublika, marking its largest loan to an Azerbaijani bank. Director Michael Jongeneel emphasises the importance of local banks in climate finance. This initiative supports sustainable projects, such as solar panels and cleaner vehicles. Read more (Dutch only)
12/11 - Pentagreen: At COP28, Pentagreen Capital, a sustainable infrastructure debt financing company, announced progress on a Green Invvestments partnership, a blended finance program which aims to address climate finance gaps in Asia, with FMO and other partners considering participation in the partnership. Read more.
12/11 - Reuters: Comment: How development banks can unlock the private capital the world needs to meet net zero. How can we demonstrate to the world’s largest private investors that the perceived risk of making climate investments in developing countries has often been proven to be much higher than the real risk? And why should the less developed countries of the world continue to be largely ignored by global investors in New York, London and Geneva? Read more
12/11 - BSS News: Credit is a human right: Chief Adviser | News Flash In this article FMO Director Impact Jorim Schraven hailed Prof Yunus for the moral support he extended on debt rights, adding it was related to people's rights to know.
14/11 - Dutch daily NRC - The local bank as key to climate change - De lokale bank als sleutel voor klimaatactie
Interview with FMO director Michael Jongeneel in national newspaper NRC. FMO aims to highlight to COP29 participants that in climate financing, the challenge lies not only in securing funds but also in ensuring their effective use. Jongeneel emphasizes the role of local banks in climate action.