UNDP official urges green investment speed-up ahead of COP31

UNDP Deputy Assistant Administrator Nick Rene Hartmann on Friday urged the world to accelerate efforts to turn available capital into green investments, warning that developing nations face financing costs up to seven times higher than advanced economies despite a $305 trillion global financial system.

Abundant capital, persistent gaps

Speaking at the Investment Summit Towards COP31 in Istanbul, Hartmann said the central challenge lies in connecting financial resources with viable climate projects. He estimated the value of the global financial system at $305 trillion — an amount that dwarfs the annual $4.3 trillion financing gap for achieving Sustainable Development Goals in developing countries.

Clean energy projects in developing countries can face financing costs up to seven times those in advanced economies, he noted. Since 2010, solar energy costs have fallen by 90% and battery storage costs by 93%, yet effective regulation, reliable infrastructure and risk-sharing mechanisms remain essential to unlock investment.

COP31 to focus on implementation

Hartmann welcomed Türkiye's ambition to make COP31 an "implementation COP," stressing that investment must advance at speed and scale. The Climate Bridge initiative, set to be presented at the conference, aims to convert climate commitments into investment opportunities with initial demonstration projects planned in Ethiopia, Fiji, Indonesia, Pakistan and Uzbekistan, combining concessional finance, grants, guarantees and private capital.

Türkiye partnership and private sector role

In Türkiye, UNDP and the Industry and Technology Ministry have developed a resource efficiency program backed by €4.5 million in EU support to prepare investment-ready projects and strengthen Turkish suppliers' competitiveness as low-carbon partners for international investors. "We do not lack the capital," Hartmann said. "Time is not our friend." He urged investors to look beyond projects already close to securing financing, stating that "sustainability should therefore not be treated simply as a compliance cost." "It is an increasing source of economic value and an investment worth making," he added.

UNDP has identified 700 sustainable development investment opportunities across 50 countries and has supported initiatives since 2022 that helped align more than $920 billion in public and private financing with the Sustainable Development Goals.