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November 3 - As the September deadline for updated Nationally Determined Contributions (NDCs) passed, only 29 countries had submitted their plans to the UN Framework Convention on Climate Change (UNFCCC). Now, on the eve of COP30 in Belem, Brazil, that number has increased to 64, but countries representing 70% of global emissions have yet to submit their plans – including the European Union and the U.S. This uneven ambition slows collective progress and threatens global climate goals at a time when tipping points are fast approaching. NDCs, introduced under the 2015 Paris Agreement, are national climate action plans submitted every five years. They outline how countries will reduce emissions and build resilience — forming the backbone of global climate strategy. But they are more than environmental pledges. They are economic blueprints for growth, job creation and energy security. With climate impacts intensifying, the latest round of NDCs could be the most important policy documents of the decade. While delays aren’t unprecedented, the stakes are now exponentially higher. Since last submitted in 2020, NDCs have not kept up with changing times, with outcomes failing to match ambition, and governments failing to leverage the significant role businesses must play in their implementation. This, coupled with the lengthy update process, raises many concerns about political commitment and whether countries are prepared to overcome headwinds and make meaningful progress by 2035. Many countries appear hesitant to commit to more ambitious targets, constrained by the Paris Agreement's "ratcheting mechanism", which requires each NDC to exceed its predecessor. This creates a dangerous cycle where caution outweighs the urgency that climate science demands. A key issue is the gap between those who set climate targets and those who must deliver them. While governments determine NDCs, businesses and civil society are primarily responsible for their implementation. Businesses’ ability to drive innovation and scale solutions at the pace required makes them a critical ally in meeting NDCs. For the new generation of NDCs to succeed, governments must provide clear regulation and incentives, while businesses must share insights and learnings from their decarbonisation journeys. Only through collaboration and partnership can NDCs become actionable strategies rather than aspirational documents. Emerging markets need an estimated $2.4 trillion annually for a low-carbon transition. Half of this must come from international support, with the private sector playing a major role. But without credible, investable NDCs, capital remains on the sidelines. The solution lies in robust governance structures and sectoral and industrial policies that make decarbonisation investable. Innovative financial instruments are already emerging. Chile, Uruguay, Thailand and Slovenia have successfully harnessed sustainability-linked bonds tied to their climate commitments, while transition bonds, such as the GX bond in Japan, demonstrate how credible NDCs can attract green capital and drive sustainable development. Tools like the ASCOR framework (Assessing Sovereign Climate-related Opportunities and Risks), developed by the London School of Economics, are helping investors evaluate the ingredients necessary for successful implementation. They harness data to provide transparent and measurable insights that can help investors assess climate-related risks and opportunities that are essential to direct capital effectively. There are other reasons to remain hopeful. In Nigeria, businesses are pushing governments for stronger targets, recognising the economic opportunities ahead. India has exceeded its Paris Agreement commitments five years early, demonstrating how national ambition, combined with private sector engagement, can deliver remarkable results. The business case for decarbonisation is becoming undeniable. Companies should view NDCs as roadmaps for their sustainability strategies, aligning with national frameworks even if global progress falls short of the 1.5C target. Not only will this alignment demonstrate climate leadership, it can also position organisations to better mitigate risks, capture opportunities and remain resilient. NDCs are evolving into powerful economic tools that can drive growth, resilience and clean energy transitions. But their potential remains largely untapped without urgent action from governments and meaningful engagement from businesses. The window to meet the Paris Agreement goals is rapidly closing. Countries that submit ambitious, actionable NDCs – backed by strong public-private partnerships – will be best positioned to thrive in the low-carbon economy. Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias. Ethical Corporation Magazine, a part of Reuters Professional, is owned by Thomson Reuters and operates independently of Reuters News. Dr. Matthew J. Bell is EY’s global climate change and sustainability services leader. Working across the public and private sectors, Matt leads teams of specialists across environment, health and safety; sustainability strategy and advice; non-financial reporting and assurance; impact investment and outcome measurement; human rights; and climate change and energy. A registered greenhouse auditor and published scientist, Matt has previously managed some of the UK government’s major research programs. Matt has a doctorate degree in Biotechnology and Genetic Engineering from Warwick HRI.
