Dodds hails City efforts to tackle climate crisis and aid growth in Global South
The development minister announced up to £100 million for Mobilist which supports firms focused on delivering the UN’s sustainable development goals.
Development minister Anneliese Dodds has hailed efforts from UK investors to boost growth and address the climate crisis in the Global South.
Speaking at the London Stock Exchange (LSE) after markets opened on Monday, Ms Dodds said the Government will provide up to £100 million for the UK’s flagship public markets programme Mobilist to support the delivery of international goals on equality and environment.
The initiative will provide firms focused on achieving the UN’s sustainable development goals (SDGs) with the anchor funding and advice they need to list on stock exchanges around the world, including London.
The Government expects the funding to generate between £400 million and £600 million of new investments in businesses across emerging markets in Asia, Africa and Latin America, which are often considered too risky.
The development minister also praised the issuance of the first bond under the Climate Investment Fund’s capital markets mechanism (CCMM), which was launched by Prime Minister Sir Keir Starmer at the UN climate conference in November to leverage future loan repayments.
The bond listed in London last month raised approximately £400 million for energy and clean technology projects in low and middle-income countries.
In her speech to an audience of pension funds, insurers, banks and development finance organisations on Monday, Ms Dodds promised to work “hand in hand” with businesses to drive investment in the Global South and boost domestic growth.
“This government is enabling the financial services sector to flourish and use its expertise and depth of capital to invest in the markets and technologies of the future,” she said.
Ms Dodds also praised the “experience and dynamism” of UK financial services, arguing that Global South investment brings an opportunity for the sector “to marry investment in the economies and technologies of the future, with the experience and expertise of the City of London”.
To support this, she vowed to work internationally to secure global financial system reforms that can help provide greater opportunity and stability.
It comes as part of wider Government efforts to encourage private sector investment in its pursuit of economic growth, which has remained stubbornly sluggish since July’s election.
Last week, British International Investment, the UK’s development finance institution funded by the Foreign Office, called for institutional investors to help develop solutions to boost the flow of private capital into emerging markets.
By mobilising finance in these countries, ministers hope to create future export markets for the UK alongside tackling the drivers of conflict, climate change and economic decline in partner countries.
Climate minister Kerry McCarthy said: “This is a historic moment for tackling the climate crisis, with the first bond raising 500 million dollars to accelerate the global clean energy transition and support the flow of climate finance to developing countries.
“Public finance alone cannot tackle the scale of this challenge, and this mechanism will help leverage the private finance needed to support those on the front line of a changing climate.
“Its listing in the UK positions London as a green finance capital. By working with partners such as the World Bank the UK can drive the action needed to grow the economy and reap the rewards of net zero.”
Julia Hoggett, LSE chief executive, said the stock exchange is “proud” to celebrate the CCMM’s listing, adding: “This pioneering bond issuance programme not only brings a new financing tool to our market but is facilitating critical investment in sustainable and clean assets.”
Tariye Gbadegesin, Climate Investment Funds chief executive, said: “The UK has long recognised that to transform our energy systems at the scale and speed required, we must deploy public money smartly.
“That means putting climate finance to work where it’s most needed: investing in promising new technologies and enabling new clean energy markets, to spur private sector interest at scale.”
