COP30 and the finance of net zero

COP30 has refocused attention on climate finance, with a $1.3 trillion annual goal for developing countries by 2035. But ambition alone won’t deliver net zero – turning policy into investment and realisable renewable energy outcomes requires innovative finance and flexible procurement. Robert Groves explains how staged CfDs and PPAs can make clean energy projects financially viable.

COP30 has thrust climate finance back into sharp focus. The Baku to Belem roadmap, presented at the conference, set an ambitious goal of $1.3 trillion each year by 2035 to support developing countries. It outlined five key action areas: replenishing, rebalancing, rechannelling, revamping and reshaping finance. However, much of the plan remains aspirational. Ambition is important; but turning it into real, investible project? That’s the hard part.

For businesses and investors, the message is clear: net zero is finance led. Projects require capital, and capital needs confidence - confidence that risks are manageable, and returns are reliable, and that markets won’t throw a curveball just when things ramp up. With energy price volatility in Europe and ongoing geopolitical uncertainty globally, companies must carefully consider how they finance climate initiatives. 

Making finance work for clean energy

Practical tools exist to bridge the gap between lofty ambition and actions. Financing climate projects in stages helps limit early risks, while Contracts for Difference (CfDs) – agreements that guarantee a fixed price for the energy a project produces – help stabilise revenue and lower borrowing costs. Together, these approaches create the practical levers needed to turn COP30’s ambitious funding goals into real renewable energy infrastructure on the ground.

Flexible power purchase agreements (PPAs) are another piece of the puzzle. Unlike traditional long-term PPAs that assume markets are calm and predictable, flexible PPAs allow staged commitments, pre-development options and adjustable terms. This means businesses can scale renewable purchases as projects mature and grow. Flexible PPAs also allow companies to participate in wholesale energy markets or balancing services, while retaining renewable energy certificates, sharing risk with developers, and making procurement more financially manageable. For corporates with big net zero ambitions, it’s a way to be bold with their energy strategy and renewable commitments, while limiting risk.  

Helping corporates navigate uncertainty

Large companies still prioritise net zero - nearly 80% of UK corporates rank it as a top strategic goal for 2025. However, despite many companies’ commitments to net zero, the same survey reveals that financial pressures remain the biggest barrier to progress. The solution? Actionable transition plans that connect energy buying, investment decisions and emissions targets.

Staged PPA commitments, testing plans against different scenarios, and partnerships with generators or assets owners helps companies reduce risk while maintaining credibility. They can also allow energy purchasing to become more than a compliance exercise, turning it into a strategic tool for saving money and building resilience in uncertain markets. 

Barriers and opportunity

Of course, there are hurdles. Fragmented policy, high upfront costs, perceived technology risk and historic financing gaps measured in trillions. Grid reforms in the UK and globally prioritise ready-to-build projects, but capital and strong management are still key to turning these into reality.

But here’s the silver lining: when finance aligns with clear, realistic transition plans, opportunity blooms. Green bonds, blended finance and ESG focused investments can unlock funding where traditional finance struggles. Digital tools, from granular renewable tracing to transparent investment platforms, can help direct money efficiently and on a large scale. 

COP30 sets the vision, but instruments like flexible PPAs and blended finance make that vision actionable. Combined with policy support and grid reform, they make renewable projects investible today while systemic gaps are addressed.

For corporates, practicality is everything. Purchasing renewable energy in stages, using flexible PPAs to manage risk, and partnering with energy specialists can turn these approaches into real contracts and structured financing. This keeps net zero targets credible even when markets are anything but unpredictable. 

In a world where trillions are needed to move the dial, and ambition alone won’t cut it, combining innovative finance with flexible and adaptable procurement can be the bridge between policy and tangible clean energy outcomes.