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Financial leaders, corporations, and philanthropists are pooling resources of more than $2 billion to bolster efforts in carbon reduction and climate resilience across Africa, Asia, and Latin America, according to a recent UK-US joint statement.
The communication, made by UK’s Energy Security and Net Zero Secretary Grant Shapps and US Special Presidential Envoy on Climate John Kerry, followed the Climate Finance Mobilisation Forum. The forum took place at Windsor Castle, England, with the objective of increasing private capital flows to emerging economies.
The forum highlighted the necessity of cross-collaboration amongst governments, philanthropists, and investors to address the immediate climate concerns adequately, as no single entity can generate the needed financial capacity on their own.
The statement further noted that, “This transition requires trillions in private investment in addition to the public funds being utilised. It presents one of the largest investment opportunities in history.”
Notable commitments include a collaborative initiative between the impact platform, Builders Vision, Japanese trader Mitsui & Co, and asset manager Renewable Resources Group Partnership. The initiative plans to manage climate change effects across vital supply chains in agriculture, natural resources development, and energy.
The partners aim to earmark at least $1 billion for initial projects in emerging markets using nature-centric solutions, such as regenerative farming and sustainable water management. They will also leverage technology to create products and systems to minimise environmental damage.
Other declarations include Builders Vision dedicating $100 million towards ocean-related investments and grants for developing economies. Additionally, the Tony Elumelu Foundation (TEF) announced the inception of a $500 million “Coalition for African Entrepreneurs.”
LeapFrog Investments, an asset manager with a focus on sustainability, proposed a $500 million investment in companies tackling climate change in Asia and Africa. The firm’s projects are projected to impact up to 50 million low-income individuals.
Launched by Britain’s King Charles in 2020, the Sustainable Market Initiative (SMI) announced a new fund – the Terra Carta Accelerator Fund. The fund targets £100 million ($128.83 million) and will concentrate on natural capital projects and supply chains across various industries in developing and emerging markets.
The Forum convened major figures from the financial sector, including representatives from BlackRock, Standard Chartered, and Allianz. Other commitments have been reported in prior announcements.