Even the most ambitious national climate plans aimed at cutting emissions to meet the 1.5C global warming goal in the Paris Agreement often lack a vital ingredient for success: private investment.With governments facing fiscal and political pressures, attracting private capital will be crucial for accelerating climate action in the coming years.Yet many Nationally Determined Contributions (NDCs) still do not have the sector-specific plans, economic incentives, policy certainty, infrastructure investment and ongoing dialogue needed to break silos between the public and private sectors and bring more businesses on board.“If you just have the high-level (NDC) target from the government in a vacuum, it’s not going to spur much business action,” said Greg Briner, senior manager for policy at the We Mean Business Coalition, which works with companies pushing for stronger climate action.“But that target combined with … more specific policies and measures that get put in place as a result of that target-implementing process, or as a result of the NDCs, is where the magic starts happening,” he explained.NDCs: late and inadequateNDCs are voluntary climate action plans created by countries under the Paris Agreement. They include commitments such as expanding renewable energy, reducing fossil fuels, halting deforestation and other measures to cut greenhouse gas emissions and limit global warming.First submitted in 2015 for the Paris Agreement, NDCs should be updated with more ambitious targets every five years, although some governments have not stuck to this timetable. Last year, most countries missed an initial February deadline to finalise the latest round of plans, known as “NDCs 3.0” – and at least 50 countries, mainly developing nations, have still not done so.Paris Agreement committee snubbed over missing NDC climate plansAlthough these national plans have helped drive emissions reductions in some sectors - including falling deforestation rates and greater investments in renewables – climate experts say progress remains far too slow to meet the Paris goals and urgent action is now needed.Last November, the UN climate body projected that global emissions would fall by around 12% from 2019 levels by 2035, based on a preliminary assessment of new NDCs announced by countries that produce nearly 70% of the world’s greenhouse gases.The Intergovernmental Panel on Climate Change has said countries should cut emissions far more rapidly, with a 60% drop by 2035 needed to limit global warming to 1.5C.But for developing economies especially, the multi-billion-dollar costs associated with transitioning to greener energy systems and curbing their emissions are still a major barrier. Climate experts say governments and businesses need to move in step if NDC targets are to be achieved.“There are positive actions going on but we need a significant ramping up. It’s not happening quickly enough,” said Briner. “It’s (about) building on these foundations that are being put in place.”Nurturing the conditions for private investmentLast September, consumer goods giant Unilever published a report, entitled Bold Plans, Real Impact, examining how corporate climate transition plans and NDCs can support each other.Among its recommendations, the report called for governments to provide clearer roadmaps for private-sector engagement. It also highlighted the need for stronger regulatory frameworks, market incentives, sector-specific transition pathways and integrated, economy-wide planning.For businesses, the report recommended aligning their transition plans with national climate priorities, collaborating more closely with industry peers, strengthening monitoring and verification systems, and unlocking finance through public-private partnerships.Comment: The missing piece in COP climate talks - market signals for adaptation A year earlier, the We Mean Business Coalition published a similar report, Time to Deliver: Business Call to Action for Ambitious and Investible NDCs.This report urged governments - particularly in the G20 economies - to unlock private investment through sectoral targets, clean energy expansion, energy efficiency measures, fossil fuel phase-outs and commitments to halt deforestation.It also stressed the importance of translating climate targets into concrete policies, backed by national implementation strategies and coordination across ministries.Another key recommendation was the need for more transparent and inclusive dialogue with businesses throughout the NDC process. Early consultation with companies, the report said, should be embedded into the development and implementation of NDCs to ensure that climate plans reflect commercial realities.Briner of We Mean Business said the economics of decarbonisation have changed dramatically over the past two decades.“Ten to 20 years ago, decarbonising and investing in clean energy and electrification was seen as nice-to-have and a more expensive option, but these days, it simply makes business sense,” he said, referring to recent geopolitical events in the Middle East that have roiled oil and gas markets, pushing up fossil fuel prices.However, upfront costs for clean energy infrastructure remain a major hurdle. Governments therefore need to complement climate policies with investments, concessional loans, grants, subsidies and tax incentives to help reduce risks, Briner added.“Globally, there are still significant subsidies going to fossil fuels in different forms,” he said. “If we could redirect some of those current incentives away from fossil fuels and into clean electrification and clean energy, then that would certainly help.”Brazil’s sector-specific climate planningBrazil’s NDC targets include expanding renewable energy – which already accounts for nearly 45% of its energy mix - ending illegal deforestation and reaching net-zero emissions by 2050.According to Briner, Brazil’s climate strategy - known as Plano Clima - offers an example of how governments can provide businesses with clearer implementation guidance.Years in development, the initiative sets out how Brazil intends to meet its climate goals through a series of sectoral plans covering areas such as energy, transport and land use.“They’ve put together some pretty detailed, impressive plans,” Briner said. “Those are the types of things that will influence business models and business decisions. It’s this more detailed second layer of setting out national plans which is of interest to business.”