U.S. Trade and Development Agency and Investor Leadership Network (ILN) announced a new strategic partnership to help mobilize climate finance from ILN’s global coalition of institutional investors representing over $10 trillion in assets. Under the partnership, USTDA will use its project preparation tools to prepare projects in emerging economies for the financing consideration of ILN’s member organizations, which include some of the world’s leading asset owners and asset managers. This partnership will help increase the pipeline of bankable climate transactions in emerging economies.
“The goal of this partnership is transformational change,” said Enoh T. Ebong, USTDA’s Director. “It will help mobilize capital from institutional investors in a broader set of emerging economies, with the goal of supporting climate-aligned economic development and accelerating our efforts to ensure a livable planet. These are exactly the goals we are pursuing here at COP28.”
Under the partnership, USTDA will fund project preparation assistance to de-risk investments in emerging economies for priority clean energy and critical minerals projects that have estimated financing needs of at least $25 million each. Among other criteria, focus projects will also have strong potential for commercial viability, large-scale development impacts, and U.S. private sector interest. USTDA and ILN will coordinate their support for these projects through a dedicated Project Preparation Window.
Amy Hepburn, Chief Executive Officer, Investor Leadership Network, said, “Our ILN members are aligned on a shared vision where economic growth and a robust and sustainable global economy aligns seamlessly with environmental stewardship and social progress. Our partnership with USTDA is a critical and necessary step in helping us make our vision a reality through exemplary partnership and practical tools. We are grateful to be on this journey as we design the ‘art of the possible’ together.”
Within ILN, the initiative will be co-chaired by the Caisse de Dépôt et Placement du Québec (CDPQ) and Ninety One Limited.
Marc-André Blanchard, Executive Vice President and Head of CDPQ Global and Global Head of Sustainability & ILN Co-Chair said, “This strategic partnership between USTDA and ILN, focused on developing a pipeline of commercially viable projects in emerging markets, encapsulates the spirit of cooperation between the public and private sectors that is essential to bridge the climate financing gap.”
Nazmeera Moola, Chief Sustainability Officer at Ninety One said, “In order to increase institutional investor funding for projects in emerging markets, we need to improve the perception of risk. Well-structured projects are the first step to doing this. Therefore, this initiative that USTDA has facilitated is very valuable.”