Unlocking $1.3 Trillion: How the Net-Zero Asset Owner Alliance Is Reshaping Climate Finance
Overview
The Net‑Zero Asset Owner Alliance (NZAOA) is a UN‑convened coalition of institutional investors managing around US $9.2 trillion in assets. NZAOA has recently unveiled a strategic roadmap to help mobilize $1.3 trillion in annual private climate finance by 2035.
Photo from UN
The “Baku-to-Belém” Roadmap
To mobilize capital at this level, the Alliance isn’t just offering recommendations, they are proposing a reshaping of how climate finance operates.
Catalytic Capital - Streamlined systems to distribute risk-tolerant funding faster, enabling blended finance structures to attract mainstream investors in these challenging, early-stage environments.
Standardization of Blended Finance - Standardizing blended finance to reduce barriers for institutional investors who need efficiency and clarity.
Expanding Bankable Projects - Urges greater technical assistance and local capacity building to ensure that more climate initiatives can attract funding and reach execution.
Better Use of Multilateral Development Banks (MDBs) - Increase MDBs investment ratio from 50 cents for every dollar, to 5:1, which would transform how institutions work with private capital for climate work.
Improved Data and Transparency - Creation of open-access platforms that offer detailed climate risk and investment data to close the information gap.
Policy and Regulatory Reform - Calls on governments and regulators to adapt frameworks to enable more responsible, sustainable investment.
A Focus on Emerging Markets
What sets this roadmap apart is its strong emphasis on emerging and developing markets. These regions are often hardest hit by climate change and yet receive the least private investment. By addressing both risk perception and structural barriers, the NZAOA’s strategy aims to unlock capital where it’s needed most.
Beyond Ambition: Evidence of Progress
While this roadmap is forward-looking, it’s grounded in recent momentum. Alliance members have increased their investments in climate solutions significantly since 2020. By aligning investment portfolios with climate goals and using their influence to reshape the financial system, these investors are pushing the market toward a more sustainable path.