UK government ministers are convening an industry-led initiative to unlock private investment aimed at tackling climate change and seizing sustainable opportunities across emerging markets and developing economies (EMDEs).
The EMDE Investor Taskforce is convened by HM Treasury and the Foreign, Commonwealth and Development Office, with asset manager Ninety One as co-chair and the Institutional Investors Group on Climate Change (IIGCC) serving as secretariat.
The Church of England Pensions Board (CEPB), NEST and The People’s Pension are on board, with other participants including Aviva Investors, British International Investment, HSBC, Legal & General, Lloyds, Phoenix Group, Private Infrastructure Development Group, and S&P Global Ratings.
The Taskforce aims to develop practical solutions, such as capacity building and product innovation, that can support UK institutional investors in considering climate and sustainable investment opportunities across EMDEs.
The initiative follows a report published by the IIGCC in March, which said that leading UK institutions “stand ready” to offer their support and leadership to an industry group that could coordinate efforts to mobilise capital to help plug the gap in EMDE climate financing needs.
“The priorities of the new UK government coalesce around this topic, underlining the propitious timing for action,” the report said, while also outlining the benefits it could bring the UK if the government took on the “unique opportunity to restate climate leadership internationally”.
‘Vital step forward’
Baroness Jennifer Chapman, minister of state for international development, said: “The Taskforce is a great example of how we are modernising our approach to international development in action.
“These emerging markets are the UK’s economic partners of the future.”
Laura Hillis, director, responsible investment at the CEPB and co-chair of a Taskforce workstream, hailed the taskforce as “a major milestone” in the pension fund’s efforts to see greater capital flow to emerging markets from institutional investors.
Hendrik du Toit, founder and chief executive officer of Ninety One, said the Taskforce was “a vital step forward, offering practical solutions to help UK institutional investors engage with climate, transition, and sustainable investment opportunities in these markets”.
“This initiative will play a central role in mobilising capital where it’s needed most and in catalysing broader flows of investment.”
While real risks exist in investing in EMDEs, “they are often overstated compared to historical outcomes”, he said. “To date, institutional investment in EMDEs has largely focused on public equities and sovereign debt. However, achieving a just and effective energy transition requires a significant increase in private equity, private debt, project finance, and corporate capital in emerging markets.”
Read the digital edition of IPE’s latest magazine

No comments yet