More than $2 billion committed at UK-US climate finance forum

[July 11, 2023]  LONDON (Reuters) -Finance leaders, companies and philanthropists have committed more than $2 billion to help finance efforts to reduce carbon emissions and boost climate resilience across Africa, Asia and Latin America, a joint UK-U.S. statement said on Tuesday.  

The statement, by Britain's Energy Security and Net Zero Secretary Grant Shapps and U.S. Special Presidential Envoy on Climate John Kerry, followed a Climate Finance Mobilisation Forum held at Windsor Castle, England, with the aim of bolstering private capital flows to emerging economies.

Grant Shapps, UK Secretary of State for Energy Security and Net Zero chats with John Kerry, the U.S. Special Presidential Envoy for Climate, during a ceremony with the presence of U.S. President Joe Biden and Britain's King Charles, at Windsor Castle in Windsor, England, Monday, July 10, 2023. Kin Cheung/Pool via REUTERS/File Photo

"Recognizing the scale and urgency of the climate crisis, the gathering emphasized the importance of partnership across governments, philanthropies, and investors – given that no single actor can mobilize finance at the scale required by acting alone," the statement said.

"The scale of this transition requires trillions in private investment in addition to the public funds we are spending. It is also one of the biggest investment opportunities in history."

Commitments included a new venture from Builders Vision, which describes itself as an "impact platform", Japanese trader Mitsui & Co and asset manager Renewable Resources Group Partnership to address the impacts of climate change across critical supply chains in agriculture, natural resources development and energy, the statement said.

These firms will identify at least $1 billion of initial projects in emerging markets using nature-based solutions, such as regenerative farming and sustainable water management, alongside technology to develop products and systems that reduce negative environmental impacts.

Other new announcements included Builders Vision committing $100 million in oceans-related investments and grants for developing economies, and the Tony Elumelu Foundation (TEF) launching a $500 million "Coalition for African Entrepreneurs".

Sustainability-focused asset manager LeapFrog Investments also announced a plan to invest $500 million in companies addressing climate change in Asia and Africa, with projects that it hopes will reach up to 50 million low-income people.

The Sustainable Market Initiative (SMI), which was launched by Britain's King Charles in 2020, announced a new fund - the Terra Carta Accelerator Fund - with a target of 100 million pounds ($128.83 million) that will focus on natural capital projects and supply chains across industries in emerging and developing markets.

The Forum brought together a number of major figures in the financial world, among them the heads of BlackRock, Standard Chartered and Allianz.

Other pledges listed in the statement were announced earlier.

($1 = 0.7762 pounds)

(Reporting by Kylie MacLellan and Tommy Reggiori Wilkes; Editing by Sachin Ravikumar and Devika Syamnath)

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