Beyond the negotiations: what really matters at COP31?

As COP31 approaches, what should investors expect from international climate negotiations, and how can global commitments translate into real investment opportunities?

In this episode of The Responsibility of Investing, Nathan Fabian, Chief Policy and Research Officer at the Principles for Responsible Investment (PRI), is joined by Wendy Walford, Head of Climate and Nature at Legal & General, to explore why climate change remains a systemic financial risk and how the COP process can help bridge the gap between ambition and implementation.

From national transition plans and carbon markets to blended finance and investable project pipelines, they discuss how governments, asset owners and financial institutions can work together to accelerate climate action.

Drawing on practical examples from the UK and emerging markets, Wendy shares insights into the importance of predictable policy frameworks, effective risk-sharing and sustained investor engagement. The conversation also examines why private capital cannot replace public finance, but can play a critical role in scaling solutions when investment structures align with commercial realities.

Detailed coverage:

Why COP matters to long-term investors

Climate change presents systemic risks to economic resilience, asset values, insurance losses and long-term returns. International climate negotiations help maintain ambition, coordinate policy responses and create the conditions investors need to manage these risks.

From climate commitments to implementation

The COP process extends beyond formal negotiations. National plans, sector initiatives, partnerships and market signals are increasingly focused on turning commitments into investable opportunities. Wendy explains why practical implementation, rather than new headline targets, will be central to COP31.

Creating the conditions for investment

Clear transition plans, predictable revenues and visible project pipelines can help attract private capital. The discussion explores examples from the UK's clean energy sector and how supportive policy frameworks can strengthen investor confidence.

How carbon markets can unlock capital

International agreements can help reduce uncertainty around emerging investment opportunities. Wendy shares an example of clean cooking bonds in Ghana, demonstrating how Article 6.2 of the Paris Agreement can support revenue structures and investment confidence.

The role of public and private finance

Meeting global climate finance needs requires both public and private capital. The conversation examines how governments can use public finance strategically, how risks should be allocated between different participants and why commercially viable investment structures are essential.

Scaling blended finance

Blended finance offers opportunities to mobilise institutional investment, but complex and bespoke transactions can limit deployment. Wendy discusses how standardised legal, governance and reporting frameworks could make these structures more accessible and scalable.

Why investor engagement must continue beyond COP

Climate finance cannot be transformed during a two-week summit. Sustained dialogue between investors, policymakers, development banks and other financial institutions is needed to address implementation barriers, strengthen national plans and develop credible investment pipelines.

Turning ambition into investable opportunities

Looking ahead, Wendy outlines the importance of practical policy design, clearer public-private responsibilities and continued investor participation. Progress will depend on translating climate commitments into funded implementation plans that can deliver long-term economic and environmental outcomes.

Chapters:

00:00 – Introduction: COP31 and the investor per