Attracting Private Climate Finance to Emerging Markets
Consultation Paper on Private Sector Considerations for Policymakers
As the COVID-19 pandemic continues to take a devastating toll around the world, the work that countries are doing to rebuild their economies also presents an unprecedented opportunity to accelerate our progress fighting climate change — including in the emerging markets that are most vulnerable to its effects.
The more we do to improve investment conditions in those markets, the more private capital we can mobilize towards projects that cut carbon emissions, grow the economy, and build resilience. The financial community has an important role to play, by actively supporting policy changes that attract investment in low-carbon projects and businesses in those markets.
To that end, the Climate Finance Leadership Initiative (CFLI), in partnership with the Association of European Development Finance Institutions (EDFI) and the Global Infrastructure Facility (GIF), are working to identify discrete hurdles to climate finance in emerging markets; support public-private dialogue around those challenges; and highlight ways for the financial sector to help strengthen investment conditions.
This collaborative working paper — called “Private Sector Considerations for Policymakers” — was drafted with the input of experienced lenders and investors. We are now inviting comments from diverse stakeholders across business, government, and civil society to ensure that this document accurately reflects the most critical considerations for attracting private climate finance in emerging markets.
We appreciate your partnership in this effort to catalyze collaboration between private finance, public finance, and policymakers.
The impact investing group Investisseurs & Partenaires (I&P) and the Belgian Investment Company for Developing countries (BIO) are pleased to announce a USD 6 million investment in XpressGas, a pioneering distributor of Liquefied Petroleum Gas (LPG) in Ghana. LPG offers an efficient and environmentally friendly alternative to traditional dirty fuels currently being used, particularly for peri-urban and rural areas.
EDFI Management Company (EDFI MC) is reinforced to boost collaboration among European Development Finance Institutions as part of the Team Europe approach.
African private equity fund manager Ascent today announced the first rolling close of its Ascent Rift Valley Fund II (ARVF II) at more than USD 100 million, significantly exceeding its initial target of USD 80 million. The final close of ARVF II, with a target of USD 120 million, is expected in December 2021.