US, Nordics tie up to develop climate finance in emerging markets
The United States and a band of Nordic countries have joined forces to launch a new Investment Mobilization Collaboration Arrangement (IMCA).
Under the plans, USAID and its Swedish, Finnish and Danish counterparts will work together to “enable private capital for investment” for climate mitigation, adaptation and other projects.
The “unique collaboration” will utilise an “innovative” PPP approach to create a pipeline of projects, as well as support the development of new tools including blending financing.
The programme will look to mobilise up to $500m in privat capital, focussing mainly on African projects.
"We all know it: At the current stage, we do not have the necessary funds needed to fight climate change. There is a global climate-financing gap. And states cannot close this gap alone. We need the private sector as partners to fight the climate challenge that faces us all,” said Lars Løkke Rasmussen, Denmark’s Minister of Foreign Affairs.
Meanwhile, UK PM Rishi Sunak has launched a new Climate Investment Funds (CIF) Capital Market Mechanism, which will see bonds generate up to $7.5bn in financing for climate projects over the next decade, looking to leverage over $50bn in co-financing from the private sector. Click here to read more about the initiative.***
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