More than $1.7bn of climate investment announced at Windsor summit

Pictured L-R: US Special Envoy for Climate John Kerry and British Energy Security and Net-Zero Secretary Grant Shapps

At the summit, hosted at Windsor Castle on Monday (10 July), investors unveiled new funds for projects that will reduce emissions and improve climate adaptation globally, with a focus on developing and emerging markets in the Global South.

Builders Vision announced a partnership with Mitsui & Co and the Renewable Resources Group, with the aim of leveraging more than $1bn for nature-based solutions. They will do so by identifying investable projects within or close to key supply chains, then collaborating with other investors and large businesses to promote the schemes.

Projects could be used to create carbon offsets for businesses via the voluntary carbon markets. The partnership will look at things like regenerative farming and nature-based solutions for more sustainable water systems. Such projects would be delivered in partnership with local communities’ experts on the ground.

Separately, Builders Vision has committed $100m to ocean-related grants and investments in developing and emerging markets. The commitment covers ecosystem conservation and restoration, but also the decarbonisation of shipping; offshore wind; and ocean-based technologies that could remove and sequester CO2.

Similarly, the UK-based Sustainable Markets Initiative (SMI) has launched a new accelerator fund with a target of £100m. It will invest in nature-based solutions projects in supply chains including forests, agriculture and aquaculture. As Prince, King Charles III set a challenge for private sector organisations participating in his SMI to scale at least ten major natural capital projects each year through to 2030.

New investment commitments have also been announced for 100,000 cleantech entrepreneurs and small businesses in Africa (Tony Elumelu Foundation, $500m); green hydrogen and geothermal energy in Africa (Forrest Group) and renewable energy in the Global South (Forrest Group).

British Energy Security and Net-Zero Secretary Grant Shapps and US Special Envoy for Climate John Kerry co-hosted the summit. The results will be relayed to President Joe Biden, Prime Minister Rishi Sunak, and the King.

Kerry said: “One important outcome of today’s event [are] the ideas and potential collaborations that are seeded and the tangible action and ways private finance and philanthropies can collaborate to accelerate action on the road to COP28.”

The World Bank’s Private Sector Investment Lab

Another major announcement at the summit came from the World Bank, which revealed the members of its new Private Sector Investment Lab. This initiative is tasked with identifying why private finance is not flowing to climate solutions in developing and emerging markets, and presenting solutions to key barriers.

The World Bank has selected 15 executives for the Lab. They represent AXA, BlackRock, HSBC, Macquarie, Mitsubishi UFJ Financial Group, Ninety One, Ping An, Royal Philips, Standard Bank, Standard Chartered, Sustainable Energy for All, Tata, Temasek, and Three Cairns Group.

The Lab will initially focus on scaling finance for renewable energy and related infrastructure. It is being co-chaired by Mark Carney and Prudential Plc’s chairman Shriti Vadera.

Carney said: “In order to address global challenges like climate change and poverty, we need new ways for the public and private sectors to work together to catalyze investment at speed and scale – particularly in developing countries. Through the Private Sector Investment Lab, the World Bank and private finance will partner closely to develop, test, implement and ultimately scale financing structures and approaches that can most effectively mobilize private capital.”

The Lab will report regularly to the World Bank Group President Ajay Banga and his executive team. Banga is the former chief executive of Mastercard and stepped into his new role earlier this year as part of a shake-up following the departure of David Malpass as President. Malpass’s resignation came after he was accused of being a climate change denier.

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