President Biden and His Majesty King Charles III Meet with Leading Philanthropists and Financiers to Catalyze Climate Finance
JULY 10, 2023
Today,
President Biden and His Majesty King Charles III met at Windsor Castle with 23
leading philanthropists and financiers to help catalyze finance to support
emerging markets and developing countries in tackling the climate crisis. The gathering followed the Climate Finance
Mobilization Forum, which was convened by the UK Energy Security and Net Zero
Secretary Grant Shapps and U.S. Special Presidential Envoy for Climate John
Kerry, and inspired by the work of His Majesty the King.
Today’s
gathering builds on longstanding UK-US efforts to turbocharge the net zero,
resilient transition already underway in developing and emerging economies on
the road to COP28. The Forum brought
together key players to identify how we can go further faster to mobilize the
private investment needed to expand clean and renewable energy across the
globe, reduce both potent CO2 and non-CO2 emissions, halt deforestation and
restore forests, and build resilience to a changing climate.
Recognizing
the scale and urgency of the climate crisis, the gathering emphasized the
importance of partnership across governments, philanthropies, and investors –
given that no single actor can mobilize finance at the scale required by acting
alone. The scale of this transition
requires trillions in private investment in addition to the public funds we are
spending. It is also one of the biggest investment opportunities in
history. Private sector financial
institutions and philanthropists announced a range of new investment platforms
and initiatives during the event that demonstrated their commitment to concrete
actions to finance efforts in Africa, Asia and Latin America. These efforts will help reduce emissions and
boost climate resilience – while generating jobs in local communities and growing
their economy.
Building on
today’s important event, the COP28 President Designate United Arab Emirates
will host a High-Level Business & Philanthropy Delivery Forum during the
World Leaders Climate Action Summit. The Forum will focus on removing barriers
to progress, showcasing what is working, and identifying opportunities for
collaboration, and acceleration.
Key
announcements from today’s event included:
Builders
Vision, Mitsui & Co. and Renewable Resources Group Partnership will
identify over $1 billion of Nature-Based Solutions Projects in Emerging Markets
through a new venture they are pursuing to address impacts of climate change
across critical supply chains in agriculture, natural resources development,
and energy. The firms seek to cooperate on activities globally where
nature-based solutions – such as regenerative farming, agroforestry, and
sustainable water management – can be used alongside best-in-class technology
solutions and local community expertise to develop products and systems that
reduce negative environmental impacts and create sustainable and mutually
beneficial outcomes. These firms will identify at least $1 billion of initial
project opportunities in emerging markets where investors and corporations can
deliver on carbon neutrality and sustainability pledges via direct investment
and supply chain participation. Potential initial investment projects span
highly biodiverse and at-risk climate regions, including areas of Central and
South America, the Middle East, and North Africa with ambition to expand to
sub-Saharan Africa and East Asia over time. Cooperation and collaboration with
multinational corporations, governments, family farmers, and others is welcomed
to support these opportunities.
Builders
Vision is also committing $100 million in oceans-related investments and grants
in emerging markets focused on blue carbon ecosystem conservation, oceans
carbon dioxide removal, shipping decarbonization and advancing wind
energy.
LeapFrog
Investments, an impact investment firm operating in emerging markets, has
committed to investing $500 million in companies that are addressing climate
change in Africa and Asia. Their aim is to provide green tools and technologies
to 50 million low-income people, enabling them to improve their lives and
livelihoods. This investment will focus on supporting companies in the built
environment, energy, mobility, and food sectors, which are key areas for a
green transition. By 2030, overall investments in these four sectors alone
could help reduce greenhouse gas emissions substantially and could create an
estimated 90 million new jobs in developing countries.
The Tony
Elumelu Foundation (TEF) is launching a $500 million Coalition for African
Entrepreneurs, to catalyse a further 100,000 young African entrepreneurs and
small businesses, focusing particularly on fragile states, women entrepreneurs,
and green entrepreneurship. The Foundation has, since 2015, connected over 1.5
million young Africans on its digital hub, TEFConnect, and disbursed nearly
$100 million in direct funding to 18,000 African women and men, who have
collectively created over 400,000 direct and indirect jobs. The Coalition is
open to development agencies, the global private sector, philanthropic
organisations, and governments to create meaningful change and empower Africa’s
next generation. Creating a green entrepreneurial revolution is fundamental to
the Coalition, as we embed sustainable practices and solutions across the next
generation.
The
Sustainable Market Initiative (SMI) has announced its Terra Carta Accelerator
Fund with a target of £100 million. The
initial focus of the Accelerator Fund will be to bring natural capital
projects, with climate co-benefits, to investability and scale with a focus on
emerging and developing markets. It also
aims to pilot Nature and climate-aligned supply chain transitions across
industries globally. The Accelerator
Fund builds on a challenge from His Majesty King Charles III to ensure the
private sector is helping to scale a minimum of five land-based and five
marine-based projects a year to 2030 as a significant contribution to the
Global Biodiversity Framework including the effective conservation and
management of at least 30% of the world’s land, coastal areas and oceans in
addition to the restoration of 30% of terrestrial and marine ecosystems. The
members of the Sustainable Markets Initiative’s Financial Services Task Force
have committed over $8.9 trillion to support the transition to net zero by 2030
(or sooner) and have already provided and mobilized over $2.5 trillion in
capital as part of those commitments since 2020/2021.
Forrest
Group (Fortescue, Minderoo Foundation and Tattarang) will pursue a unique portfolio of blended philanthropic,
private and public finance with seven priority actions to continue the scale-up
of its green metals and green businesses, including (1) embarking on a new
project of work with the Green Hydrogen Standard 2.0 at COP28 to ensure
standards are set in a way that helps emerging economies thrive while also
partnering with leading African universities to develop the skills required to
enable the hydrogen industry in Africa; (2) developing an ethical and secure
supply chain for critical clean technologies with practical initiatives such as
transforming an existing, surplus geothermal energy source to generate green
hydrogen in Kenya; and (3) building an estimated $20 billion in renewable
energy projects across the world, including in Africa, Australia, Europe and
Latin America. Projects are expected to be financed in the rapidly developing
green, structured finance global capital markets.
This is in
addition to recent pledges and initiatives from Forum participants showcasing
climate leadership:
Boston
Consulting Group: BCG previously announced that it expects to invest $2 billion
in the next decade to reach their “Net Zero by 2030” commitment and to provide
consulting support to society and organizations in addressing critical climate
and sustainability efforts across a broad range of partnerships including with
UN Framework Convention on Climate Change Conference of the Parties, the First
Mover Coalition, and many others. They supported the initial set up of the
Energy Transition Accelerator (ETA) design process and are excited about its
potential. While important design issues remain to ensure high-quality credits
and clear recognition of companies’ contributions, they are optimistic these
issues can be successfully addressed, and in that case, expect to become a
founding partner in the ETA community and encourage others to participate as
well.
BlackRock:
At COP26, BlackRock announced the final close of the Climate Finance
Partnership (CFP), a blended finance investment vehicle that seeks to
accelerate the flow of capital into climate-related investments in emerging
markets. So far in 2023, CFP has committed approximately $190 million into
renewables investments in Kenya and the Philippines, and has approved the
deployment of a further c. $90 million into two additional investments, both in
emerging economies in South East Asia, which will be announced (subject to
certain conditions) in due course. Following these capital commitments, CFP
would have around $390 million of capital for deployment into future emerging
markets climate technology investment opportunities.
Bloomberg
Philanthropies, in partnership with the Glasgow Financial Alliance for Net
Zero, will build on its long-term commitment to move the world beyond coal and
keep the 1.5°C global warming target within reach. To address the specific
challenges involved in accelerating a successful managed phaseout of coal power
in emerging economies, Bloomberg Philanthropies will expand
its support for Just Energy Transition Partnerships in
countries including Indonesia and Vietnam, with a focus on ways for public and
private finance to work together to unlock capital to enable economies to
reduce coal and ramp up the development and deployment of clean energy. In
addition, Bloomberg Philanthropies will help develop global and local standards
and policy frameworks to ensure that the managed phaseout of coal is done in an
effective and orderly manner. This includes developing and delivering concrete
integrity guidelines by COP28 for the use of carbon credits in incentivizing
earlier coal retirement, avoiding the planned release of millions of tons of
carbon dioxide into the atmosphere.
Community
Jameel, a global organisation focused on helping communities thrive, has
announced that they are increasing their funding for climate initiatives ahead
of COP28. The funding will support projects like the Jameel
Observatory-CREWSnet, a platform that predicts climate change to help
communities adapt. Community Jameel is committed to addressing climate change,
particularly its impact on vulnerable communities. They will continue their
efforts to combat food insecurity through agricultural innovation and
climate-smart agriculture.
Ninety One,
a global investment manager, has announced initial funding for its new strategy
called Emerging Market Transition Debt (EMTD). This strategy aims to provide
commercial financing to support real-world efforts in reducing carbon emissions
where it is most needed. The firm is now raising more funds with the goal of
turning EMTD into a large-scale initiative worth billions of dollars. By actively
participating in the Sustainable Markets Initiative, Ninety One is contributing
to the creation of a new investment category focused on transition debt. They
provide credit to high-emitting companies that have a strong potential for
transitioning towards sustainability. The aim is to inspire other companies to
offer similar opportunities and promote transition financing on a larger scale
Three
Cairns Group and Sea Change Foundation International announced the formation of
Allied Climate Partners, Inc. (ACP), a philanthropic investment organization
with a mission to increase the number of bankable, climate-related projects and
businesses in emerging markets and developing economies to create significant
environmental, economic, and social impact.
ACP will select regional investment managers in Southeast Asia, Africa,
the Caribbean and Central America, and India and support them with capital and
the expertise necessary to increase the number of climate-related projects and
asset-oriented businesses by investing at the early-stages of the development
process. The initiative will be formally launched at COP28.
The World
Bank’s Private Sector Investment Lab have announced 15 Chief Executive Officers
and Chairs who will make up the Lab. The
founding members comprise a core group charged with developing solutions to
address the barriers to private sector investment in emerging markets and
developing countries – including leaders from AXA, BlackRock, HSBC, Macquarie,
Mitsubishi UFJ Financial Group, Ninety One, PIMCO, Ping An, Royal Philips,
Standard Bank, Standard Chartered, Sustainable Energy for All, Tata, Temasek,
and Three Cairns Group. The Lab will identify new approaches, building on the
World Bank’s current work, to address existing barriers and develop solutions,
with the ultimate goal of crowding in greater levels of private finance in
emerging markets. The Lab will initially focus on scaling transition finance in
renewable energy and energy infrastructure.
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President Biden and King Charles’ marriage of convenience
By CALDER
MCHUGH 07/10/2023 07:00 PM EDT
THE MONARCH
AND THE COLONIAL — On the way to a NATO summit in Lithuania, President Joe
Biden today made a quick stopover in England for tea with King Charles III —
and an unusual discussion of policy.
Biden’s
first bilateral reception with Charles since he ascended the throne last
September was devoted to a dialogue on environmental issues that included a
joint briefing from Britain’s Energy Secretary Grant Shapps and U.S. special
climate envoy John Kerry on trans-Atlantic attempts to “accelerate the
deployment of literally trillions of dollars” of climate change investment,
according to Kerry.
Historically,
visits between U.S. presidents and English monarchy have been more ceremonial
than policy-oriented; they’re more likely to produce incidents like tittering
from etiquette experts when former President Barack Obama gave Queen Elizabeth
II an iPod as an official gift (though word is she loved it).
And Biden’s
Irish-American roots suggest that his bond with Charles is not a natural one.
In his autobiography Promises to Keep, Biden wrote, “When I told my mother I
was going to have an audience with the Queen of England, the first thing she
said was, ‘Don’t you bow down to her.’” His decision not to attend Charles’ May
coronation roiled some pro-monarchy English politicians.
Still, the
two have found common ground. In 2021, Biden told then-Prince Charles that “we
need you badly” to help with climate targets at COP26. And on Sunday, before
their meeting, National Security Advisor Jake Sullivan told reporters that
Biden has long considered Charles a “clarion voice” on climate issues.
To some
degree, it is a marriage of convenience. While the official website for the
British monarchy says that “The Sovereign no longer has a political or
executive role,” Charles isn’t about to pause his lifelong work of advocating
for sustainability just because he’s finally on the throne. Meeting with the
American president on the issue burnishes his credentials on a matter he cares
deeply about.
For Biden,
the meeting offered an opportunity to showcase his commitment to climate issues
just as his reelection campaign starts cranking — and his team has decided that
investment in green technology is a winning issue.
The two
were determined enough to establish a new kind of relationship that they broke
protocol in other ways as well. When Biden met Charles at Windsor Castle
earlier today, he patted the king on the back — a gesture that violates royal
norms, though one that’s commonplace for the often physically affectionate
Biden. It’s a way of ever-so-lightly stripping down the veneer of cold
formality.
Responding
to the contact, a source inside Buckingham Palace said, “His Majesty the King
is entirely comfortable with that kind of contact — and what a wonderful symbol
of warmth and affection it was between both the individuals and their nations.”
The meeting
with Charles wasn’t the only thing on Biden’s agenda today. He also met with
Prime Minister Rishi Sunak, working on a relationship that the White House and
10 Downing Street are hoping to rebuild after the turbulent tenures of former
Prime Ministers Boris Johnson and Liz Truss. (Biden and Sunak’s meeting was
reportedly focused on Ukraine).
It’s too
early to tell if the meeting will lead to any progress on climate or
significant diplomatic promises to one another. Symbolism remains at the heart
of Biden and Charles’ meeting today. But the two are using centuries of
tradition to try to tell a new story: about the priorities of the throne and
the intentions of a president in a close race for reelection.
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