Join Mercer and British International Investment in expanding climate finance initiatives in emerging markets by submitting your investment proposals today.
Empowering Sustainable Growth in Emerging Economies
As the world grapples with the escalating impacts of climate change, the need for robust climate finance initiatives has never been more critical. Mercer and British International Investment (BII), the UK’s leading development finance institution and impact investor, have launched a collaborative initiative aimed at scaling climate finance in emerging markets and developing economies (EMDEs). This call to action invites the investment community UK to design innovative investment products that bridge the gap between institutional investors’ risk appetites and the promising yet challenging investment landscape of EMDEs.
The Crucial Role of Mobilisation in Climate Finance
Climate change poses severe threats globally, with EMDEs often bearing the brunt of its adverse effects, from extreme weather events to rising sea levels. Recognizing this, BII has already mobilised over $1.1 billion in private capital into climate finance projects between 2021 and 2023. However, the scale of the challenge necessitates a more substantial and coordinated response.
In September 2024, the UK Prime Minister announced a £100 million BII Mobilisation Facility, designed to unlock hundreds of millions of pounds in private investment specifically targeted at climate and sustainability-focused projects in EMDEs. This facility aims to mitigate the perceived risks and align investment opportunities with the sustainable development goals of these regions.
Investment Opportunities in Emerging Markets
Emerging economies are set to become the engines of global economic growth, accounting for over 60% of the world’s GDP and projected to consume 74% of global energy by 2050. This shift presents unparalleled opportunities for investors focused on sustainable sectors such as clean energy, infrastructure, and nature-based solutions. Investing in these areas not only promises potential financial returns but also drives significant environmental and social impact.
How Private Investors Can Drive Change
Mercer and BII are seeking proposals from asset managers with a strong track record in climate finance and investment within EMDEs. Successful proposals should demonstrate innovative capital structures that attract institutional investors while advancing climate objectives. The Mobilisation Facility offers up to £50 million for 1-3 proposals, with potential access to additional non-concessional funds to scale impactful projects.
Eligibility Criteria
- Proven expertise in private markets, including private equity, private credit, infrastructure equity, or infrastructure debt.
- Assets under management exceeding £5 billion or the capability to raise institutional capital at scale.
- Demonstrated ability to originate investments in target EMDE markets.
- Commitment to climate transition objectives following recognized frameworks like NZIF 2.0.
- Adherence to BII’s compliance, business integrity, and environmental/social policies.
Evaluation Criteria
Proposals will be assessed based on scalability, impact, feasibility, replicability, and sustainability. Emphasis will be placed on solutions that can significantly increase private capital flows into EMDEs, reduce CO2 emissions, and support long-term climate transitions within a maximum execution period of two years.
Oriel IPO: Revolutionizing Investment Opportunities in the UK
In this landscape of growing investment opportunities, platforms like Oriel IPO are instrumental in democratizing access to funding for UK startups. Launched in early 2024, Oriel IPO connects entrepreneurs with angel investors through SEIS/EIS tax incentives, eliminating commission fees and providing valuable educational resources. By fostering a supportive community and offering curated, tax-efficient investment options, Oriel IPO enhances the investment community UK’s ability to engage with high-potential startups, further contributing to the sustainable investment ecosystem.
Conclusion
The partnership between Mercer and BII represents a significant step towards addressing the global climate funding gap, particularly in emerging markets where the need is most urgent. By inviting the investment community UK to participate in this initiative, they are paving the way for innovative solutions that not only offer financial returns but also drive substantial environmental and social impact.
Take the next step in sustainable investing and join this transformative initiative. Submit your investment proposal today!
