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United Kingdom Forms Financial Squad for Developing Nations Investments

UK's Foreign Office and Treasury partner with private financial backers, establishing a novel taskforce aimed at boosting private investment in developing economies. Participants consist of pension funds, insurance companies, and asset managers.

United Kingdom forms a new investment group focused on developing nations
United Kingdom forms a new investment group focused on developing nations

United Kingdom Forms Financial Squad for Developing Nations Investments

The UK Government has launched a new initiative, the Emerging Markets and Developing Economies (EMDE) Investor Taskforce, aimed at catalyzing long-term climate capital flows into developing economies across Latin America, South and Southeast Asia, and Africa.

The taskforce, which will serve as the secretariat for by the Institutional Investors Group on Climate Change (IIGCC), is a coalition of 15 financial sector institutions, including pension funds, insurance companies, asset managers, banks, development finance institutions, and investment consultants.

Baroness Chapman, the UK's Minister of State for International Development, has stated that these emerging markets are expected to contribute 65% of global economic growth by 2035. However, private sector contributions in some regions, such as Africa, account for only 18% of climate finance.

Institutional investment in emerging markets has largely focused on public equities and sovereign debt, but Henrdrik du Toit, founder and CEO of one of the taskforce members, Ninety One, emphasizes the need for a shift towards private equity, private debt, project finance, and corporate capital.

The EMDE Investor Taskforce will focus on mobilizing private finance to support climate action in EMDEs, addressing market and policy challenges that hinder investment. It operates through multi-stakeholder engagement, including investors and governments, to foster collaboration and to help deliver existing climate plans more effectively.

The taskforce, which will hold an event at the London Stock Exchange on a date not specified (NZI Annual Conference), is part of the UK government's wider approach to promote sustainable growth aligned with the transition to a net zero economy. Financial actors spearheading this taskforce are positioned to advance guidance on climate resilience and risk assessment methodologies tailored to EMDEs, helping unlock climate capital at scale.

Stephanie Pfeifer, CEO of IIGCC, is proud to serve as the secretariat for the taskforce and aligns it with IIGCC's ambition to support investment into climate, transition, and sustainable opportunities across emerging markets. Henrdrik du Toit, who will co-chair the taskforce, has commented that momentum is building for the energy transition in emerging markets.

The financing gap for climate solutions in developing economies is approximately $1.8 trillion annually. The EMDE Investor Taskforce aims to help bridge this gap, ensuring private capital supports adaptation and long-term climate goals in these regions.

  1. To help address the financing gap and enable the private sector to contribute more effectively towards climate goals in developing economies, the EMDE Investor Taskforce will concentrate on mobilizing private finance for climate action, focusing on areas like private equity, private debt, project finance, and corporate capital, as emphasized by Henrdrik du Toit.
  2. As part of the UK government's wider focus on promoting sustainable growth and a transition to a net zero economy, the EMDE Investor Taskforce will collaborate with both investors and governments through multi-stakeholder engagement, aiming to provide guidance on climate resilience and risk assessment methodologies tailored to Emerging Markets and Developing Economies (EMDEs), ultimately helping to unlock climate capital at scale.

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