In a momentous gathering at Windsor Castle, President Biden, and His Majesty King Charles III witnessed the collaboration between leading philanthropists and financiers aimed at mobilizing finance for emerging markets and developing countries in their fight against the climate crisis.
The gathering followed the Climate Finance Mobilisation Forum, jointly convened by Grant Shapps, the UK Energy Security and Net Zero Secretary, and John Kerry, the US Special Presidential Envoy for Climate.
Inspired by the work of His Majesty the King, this event reinforces the long-standing efforts of the UK and the US to accelerate the net-zero transition in developing and emerging economies leading up to COP28.
Advancing Private Investment and Climate Resilience Globally
Under the overarching goal of mobilizing private investment and expanding clean and renewable energy worldwide, reducing non-CO2 emissions, preventing deforestation, and enhancing climate resilience, the Forum brought together key stakeholders.
The gathering emphasized the significance of partnership among governments, philanthropies, and investors, acknowledging that addressing the climate crisis necessitates collective action. The scale of this transition demands trillions of dollars in private investment alongside public funds. Moreover, it presents one of the most substantial investment opportunities in history.
During the event, private sector financial institutions and philanthropists announced a range of new investment platforms and initiatives, demonstrating their commitment to concrete actions.
These actions will finance climate efforts in Africa, Asia, and Latin America, thereby contributing to emission reduction and climate resilience.
Moreover, they will create employment opportunities and foster economic growth in local communities.
High-Level Business & Philanthropy Delivery Forum at COP28
The momentum generated by this important gathering will extend to the upcoming COP28 in the United Arab Emirates. The event will host a High-Level Business & Philanthropy Delivery Forum during the World Leaders Climate Action Summit.
This forum will focus on removing barriers to progress, showcasing successful initiatives, identifying collaboration opportunities, and accelerating climate action.
Builders Vision, Mitsui & Co., and Renewable Resources Group Partnership
Identifying $1 Billion of Nature-Based Solutions Projects
Builders Vision, Mitsui & Co., and Renewable Resources Group have formed a partnership committed to identifying over $1 billion worth of Nature-Based Solutions Projects in Emerging Markets.
By harnessing the power of nature-based solutions, such as regenerative farming, agroforestry, and sustainable water management, along with cutting-edge technology and local community expertise, these projects aim to reduce negative environmental impacts and deliver sustainable outcomes.
The collaboration seeks to engage investors and corporations operating in emerging markets, enabling them to fulfill their carbon neutrality and sustainability commitments through direct investments and active participation in supply chains.
The initial project opportunities will focus on highly biodiverse and at-risk climate regions in Central and South America, the Middle East, and North Africa. Over time, the partnership plans to expand its efforts to sub-Saharan Africa and East Asia.
Builders Vision welcomes cooperation from multinational corporations, governments, family farmers, and other stakeholders to support these initiatives, recognizing that collective action is vital to addressing the climate crisis and achieving a meaningful impact.
Builders Vision’s Commitment to Oceans-Related Investments
Investing $100 Million in Emerging Markets
Builders Vision, in addition to its partnership efforts, has made a separate commitment of $100 million in oceans-related investments and grants in emerging markets. This funding will prioritize initiatives that focus on blue carbon ecosystem conservation, oceans’ carbon dioxide removal, shipping decarbonization, and advancing wind energy.
By directing resources towards these critical areas, Builders Vision aims to contribute to the preservation of marine ecosystems while supporting sustainable economic development in emerging markets. The investments will play a crucial role in driving the transition to a greener and more resilient future.
LeapFrog Investments’ Investment in Climate Change Solutions
Investing $500 Million to Benefit Low-Income Individuals
LeapFrog Investments, an impact investment firm with a focus on emerging markets, has pledged to invest $500 million in companies addressing climate change in Africa and Asia. The firm aims to provide green tools and technologies that improve the lives and livelihoods of 50 million low-income individuals.
LeapFrog’s investments will primarily target key sectors such as the built environment, energy, mobility, and food, which offer significant potential for reducing emissions and creating new job opportunities in developing countries.
By actively supporting companies driving positive environmental change, LeapFrog is committed to facilitating a sustainable transition and uplifting communities in Africa and Asia.
The Tony Elumelu Foundation’s Coalition for African Entrepreneurs
Launching a $500 Million Initiative
The Tony Elumelu Foundation (TEF) has announced the launch of the Coalition for African Entrepreneurs, a $500 million initiative aimed at catalyzing the growth of 100,000 young African entrepreneurs and small businesses.
With a particular focus on fragile states, women entrepreneurs, and green entrepreneurship, the coalition aims to empower Africa’s next generation and foster sustainable economic development.
TEF has a strong track record of connecting young Africans through its digital hub, TEFConnect, and has disbursed nearly $100 million in direct funding, resulting in the creation of over 400,000 jobs.
The coalition invites participation from development agencies, the global private sector, philanthropic organizations, and governments to drive meaningful change and empower Africa’s entrepreneurial ecosystem.
By embedding sustainable practices and solutions, the coalition seeks to create a green entrepreneurial revolution across the continent.
The Sustainable Market Initiative’s Terra Carta Accelerator Fund
Targeting £100 Million for Climate and Nature Projects
The Sustainable Market Initiative (SMI) has announced the Terra Carta Accelerator Fund, with a target of £100 million in investments. The fund’s primary focus will be on natural capital projects that have climate co-benefits in emerging and developing markets. By supporting these projects, the fund aims to facilitate the transition to a sustainable economy.
Additionally, the Terra Carta Accelerator Fund plans to pilot Nature and climate-aligned supply chain transitions across industries on a global scale. The goal is to drive systemic change by demonstrating viable and scalable models that integrate sustainability into supply chain operations.
Members of SMI’s Financial Services Task Force have already made remarkable commitments, with over $8.9 trillion dedicated to supporting the transition to a net-zero economy. Since 2020/2021, these members have mobilized $2.5 trillion in capital, reinforcing their commitment to sustainable finance and investments.
Climate Commitments
Boston Consulting Group (BCG)
BCG’s $2 Billion Investment and Support for Net Zero Commitment
Boston Consulting Group (BCG) has made a substantial commitment of $2 billion over the next decade to achieve its ambitious “Net Zero by 2030” goal. In addition to the financial investment, the firm will provide consulting support to address critical climate and sustainability efforts.
BCG is actively engaged in partnerships such as COPs and the First Mover Coalition. With optimism about the Energy Transition Accelerator (ETA), BCG expects to become a founding partner, urging others to join in this transformative initiative.
BlackRock
BlackRock’s Climate Finance Partnership (CFP) Closes with Strong Commitments
BlackRock, a global investment management company, announced the final close of the Climate Finance Partnership (CFP) during COP26. This blended finance investment vehicle aims to accelerate the flow of capital into climate-related investments in emerging markets.
The CFP has already committed approximately $190 million to renewable energy investments in Kenya and the Philippines in 2023. Moreover, an additional $90 million has been approved for investment in two emerging economies in South East Asia, with formal announcements to follow.
BlackRock’s commitment to the CFP anticipates deploying around $390 million in future climate technology investments in emerging markets.
Bloomberg Philanthropies
Bloomberg Philanthropies Expands Efforts to Transition Beyond Coal
In partnership with Glasgow Financial Alliance, Bloomberg Philanthropies expands its commitment to transition beyond coal, maintaining a 1.5°C target.
Recognizing challenges, Bloomberg focuses on Just Energy Transition Partnerships in countries like Indonesia and Vietnam.
Partnerships aim to unlock capital, foster collaboration, reduce coal usage, and adopt clean energy solutions.
Efforts include creating guidelines for carbon credits, preventing the release of millions of tons of carbon dioxide.
Community Jameel
Increased Funding for Climate Initiatives
The global organization Community Jameel is dedicated to community well-being. They have announced an increase in funding for climate initiatives ahead of COP28. This expanded funding will support crucial projects, including the Jameel Observatory-CREWSnet, which predicts climate change patterns to aid community adaptation.
In alignment with their commitment to combat food insecurity, Community Jameel will continue to invest in agricultural innovation and climate-smart agriculture. By addressing these pressing challenges, the organization aims to make a positive impact on vulnerable communities affected by climate change.
Ninety-One
Ninety-One’s Investment in Emerging Market Transition Debt (EMTD)
Global investment manager Ninety One has taken a significant step in funding its Emerging Market Transition Debt (EMTD) strategy. This initiative aims to provide commercial financing to support real-world efforts in reducing carbon emissions where it is most needed.
Ninety-One is actively raising additional funds to transform EMTD into a large-scale initiative worth billions of dollars. By participating in the Sustainable Markets Initiative, Ninety One is promoting transition financing and encouraging other companies to follow suit.
This commitment reflects their dedication to facilitating the necessary investments in emerging markets to achieve a sustainable and low-carbon future.
Three Cairns Group and Sea Change Foundation International
Allied Climate Partners (ACP) Announcement
At the gathering, Three Cairns Group and Sea Change Foundation International jointly announced the formation of Allied Climate Partners, Inc. (ACP).
ACP is a philanthropic investment organization with a core mission to increase the number of bankable climate-related projects and businesses in emerging markets and developing economies.
To achieve this, ACP will select regional investment managers across Southeast Asia, Africa, the Caribbean and Central America, and India. These managers will receive capital and expertise to support climate-related projects and asset-oriented businesses at the early stages of development.
The formal launch of ACP will take place at COP28, underscoring its importance in driving sustainable and impactful initiatives worldwide.
World Bank’s Private Sector Investment Lab
Founding Members of the Private Sector Investment Lab
The World Bank’s Private Sector Investment Lab has introduced 15 esteemed CEOs and Chairs as founding members.
These prominent leaders hail from organizations such as AXA, BlackRock, HSBC, Macquarie, Mitsubishi UFJ Financial Group, Ninety One, PIMCO, Ping An, Royal Philips, Standard Bank, Standard Chartered, Sustainable Energy for All, Tata, Temasek, Three Cairns Group.
Tasked with developing solutions to overcome barriers to private sector investment in emerging markets and developing countries, these members will focus on scaling transition finance in renewable energy and energy infrastructure.
The Lab aims to attract greater levels of private finance to emerging markets and accelerate the global transition to a sustainable and resilient future.
Recognizing Climate Leaders
The gathering acknowledged the presence of numerous influential participants, including:
- Alison Rose from Natwest
- Andrew Forrest representing Fortescue Group
- Andy Kuper from Leapfrog
- Bill Winters, the Chair of Standard Chartered
- Brian Moynihan from Bank of America
- Colm Holmes representing Allianz
- Fady Jameel, representing Community Jameel
- Hendrik du Toit from Ninety One
- Isabella da Costa Mendes and Victoria Miles from ImpactA
- Jennifer Jordan-Saifi, representing The Sustainable Markets Initiative
- John Neal, the CEO of Lloyd’s
- Larry Fink, the CEO of BlackRock
- Lukas Walton, representing Builders Vision
- Mark Carney, associated with the Private Sector Investment Lab, Brookfield Asset Management, and The Glasgow Financial Alliance for Net Zero
- Mark Gallogly, the Founder of Three Cairns Group
- Mary Schapiro from The Glasgow Financial Alliance for Net Zero
- Nat Simons, the founder of the Sea Change Foundation
- Noel Quinn, the CEO of HSBC
- Rich Lesser, representing Boston Consulting Group
- Shriti Vadera, associated with Prudential Plc and the Private Sector Investment Lab
- Sultan Ahmed Al Jaber, the COP President Designate
- Tony Elumelu from The Tony Elumelu Foundation
This diverse group of leaders represents a range of sectors and industries, highlighting the collective effort to combat the climate crisis.
In conclusion
The Climate Finance Mobilisation Forum witnessed a significant convergence of philanthropists, financiers, and leaders committed to accelerating the transition to a sustainable future.
With a focus on mobilizing private investment, and supporting emerging markets, and developing countries, these announcements and initiatives mark a pivotal step toward mitigating the climate crisis.
The upcoming High-Level Business & Philanthropy Delivery Forum at COP28 in the UAE will provide an opportunity to further remove barriers, showcase successful models, and strengthen collaboration in the pursuit of a resilient and sustainable global economy.
Sources: THX News, Department for Energy Security and Net Zero & The Rt Hon Grant Shapps MP.
