COP31: Financial institutions to deliver 10 billion Euros in climate finance
Antalya, Nov 13
Development finance institutions for the UK, Norway and Canada on Friday launched "10by30", a collaboration to deliver Euro 10 billion in climate finance in emerging markets by 2030.
British International Investment (BII), Norfund and FinDev Canada will share pipelines, coordinate due diligence and cooperate on climate reporting under the new collaboration.
The $10 billion, including private capital mobilised, will be invested in projects across renewable energy, transmission and distribution infrastructure, energy storage, sustainable fuels and industrial decarbonisation.
The initiative was launched at COP31 in Antalya. At COP29 in 2024, countries agreed on a goal of mobilising at least $300 billion a year for developing countries by 2035 and called for scaling climate finance from all sources to $1.3 trillion a year.
The COP31 Presidency has described this year's conference as "a COP of implementation and acceleration". The DFIs have each set up dedicated climate investment initiatives: The Norwegian Climate Investment Fund, British Climate Partners, and the Climate Mobilisation Strategy. The three institutions share the same aims and much of the same approach, using their capital, expertise and market presence to de-risk investments, avoid emissions at scale and mobilise private capital.
Under a memorandum of understanding, the three institutions will strengthen their collaboration on climate and energy-transition investment in emerging markets, with the aim of reducing duplicated work and speeding up decisions on shared transactions.
They will work together to: identify investment opportunities, share pipeline and market intelligence, coordinate due diligence and co-invest in flagship transactions; advance methodologies for measuring climate and development effects; improve enabling conditions, and advance best practice on mobilising private capital for climate finance projects.
Lucy Rigby KC MP, UK Economic Secretary to the Treasury, said: "The UK is backing practical action to unlock investment for the energy transition in emerging markets. By mobilising $10 billion of private finance for the energy transition by 2030, we will help public finance go further and support greater investment in clean energy, sustainable growth and economic opportunity."
"Today's signing brings together three global leaders in climate finance in emerging markets. Our shared determination is to create the opportunities that will move private capital at an unprecedented scale to where it is needed the most," said Leslie Maasdorp, Chief Executive of BII.
"Climate finance needs both scale and speed. Working together lets us use our capital and teams more efficiently, so we can move faster and mobilise more private capital where the most emissions can be avoided. The Norwegian Climate Investment Fund gives Norfund a strong platform to help deliver our shared goal of USD 10 billion in climate finance by 2030," added Erik Sandersen, CEO of Norfund.
Lori Kerr, CEO of FinDev Canada, said: "Meaningful climate impact requires scaling investment into commercially viable mitigation opportunities, particularly in higher-emitting emerging markets. Thanks to our fresh capital, blended finance products, and technical assistance, we can attract larger volumes of private capital to make sure investment opportunities have the highest impact on reducing GHG emissions and accelerating the energy transition."
— IANS
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