Will COP 30 be a Game-Changer for Climate Action, Human Rights, and Financial Innovation?

This year’s COP30 comes at a pivotal time, following the International Court of Justice’s ruling in July 2025. This ruling not only affects states’ responsibilities regarding human rights but also creates opportunities for financial institutions to take a leading role in addressing climate issues.

The ICJ’s decision aligns with the UN General Assembly’s 2022 resolution that a clean, healthy, and sustainable environment is a fundamental human right. This means that nations that have signed international agreements now have a legal obligation to confront climate change as part of their human rights responsibilities. Essentially, COP30 is a chance to put human rights at the center of climate discussions.

As states ramp up efforts to meet these obligations, financial institutions stand to benefit. Increased regulatory pressure means that businesses and investors who ignore these changes face risks. This shift in focus provides fresh opportunities for financial entities to explore sustainable practices that prioritize human rights alongside climate change.

In recent years, climate impacts that seemed distant have become pressing concerns for banks and insurers. Issues like displacement and public health crises caused by climate change are now seen as significant risks. Investors are increasingly pressuring institutions to take measurable action, and this trend is likely to continue. By adopting more proactive approaches, financial institutions can position themselves as leaders in sustainable finance.

Many banks already have processes that can effectively support this agenda. They can integrate human rights considerations into their operations. For instance, tools like the UNEP FI Human Rights Toolkit help financial institutions align their practices with human rights standards.

The court’s ruling encourages a deeper collaboration between teams within these institutions. It highlights the need to coordinate environmental and social strategies, which have often operated separately. This melding is crucial for addressing the intertwined challenges of climate action and human rights protection.

Moreover, embracing Just Transition principles can guide financial institutions in transitioning to a greener economy in ways that also benefit individuals and communities. This may mean investing in initiatives that create jobs or improve living conditions as we shift towards environmental sustainability.

Many banks are already seizing these innovative opportunities. Triodos Bank in the UK, for example, provided GBP 3 million, alongside over GBP 500,000 from a community bond, to facilitate community ownership of a solar farm, supplying power to 825 homes annually. Similarly, BNP Paribas’s My Sustainable Home initiative helps customers access the funds needed to make residential properties more energy-efficient.

Insurers are adapting as well. In the Philippines, Pioneer Life Insurance launched MediCash — Dengue Insurance to assist families financially during outbreaks linked to climate change. Hollard Zambia, part of Hollard Group from South Africa, offers affordable insurance for microbusiness owners to enhance their climate resilience.

These examples show how financial institutions can positively impact communities while tackling climate change. COP30 is a moment to unify efforts to ensure a livable world for all living beings.

To learn more about integrating human rights into financial practices, explore the UNEP FI Human Rights Toolkit and the UNEP FI-ILO report on Just Transition Finance.



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