Financial Giants Join UK-Led Taskforce to Mobilize Climate Funding Across Developing Nations

To reshape sustainable finance's future, the UK’s Minister for International Development and the Economic Secretary to the Treasury unveiled yesterday's significant new initiative: the Emerging Markets and Developing Economies (EMDE) Investor Taskforce. This industry-led body is poised to unlock vast private capital flows into climate-focused and sustainable growth opportunities across emerging and developing markets, regions expected to account for nearly 65% of global economic growth by 2035.

The stakes couldn’t be higher. Meeting international climate targets will require a dramatic uptick in sustainable investment across EMDEs. And the opportunity? Massive. Estimates suggest that climate-related investment—both in mitigation and adaptation—could deliver returns approaching tenfold by the end of the century. For the UK, this is more than just altruism. It's a growth strategy. Such flows enhance the £243 billion contribution of the financial and professional services sector, boost the public purse with £110 billion in tax revenues, and reinforce a job base supporting 2.4 million workers.

Despite the scale of the opportunity, the reality is stark: private capital is simply not flowing into these markets at the pace or scale required. Take Africa, for example—only 18% of climate finance on the continent currently comes from private sources. That shortfall isn’t just an economic issue; it’s a global risk. The climate crisis in EMDEs is deeply intertwined with cascading threats—extreme weather events, crop failures, water scarcity, forced migration, and geopolitical instability.

Scaling sustainable investment into these regions isn't just ethical—it’s essential. The EMDE Taskforce aims to dismantle the barriers that have long constrained long-term capital. Expect tangible, practical solutions: from product innovation and new financial instruments to strategic capacity building across institutions. Geographically, the focus spans a broad footprint—Latin America and the Caribbean, South and Southeast Asia, and Africa. Without substantial investment in low-carbon and climate-resilient infrastructure across these regions, the global community will not hit its climate targets.

What sets this taskforce apart is its hybrid architecture. It unites heavyweight players across the financial services spectrum—banks, insurers, asset managers, pension funds, development finance institutions, and investment consultants—with senior government leaders from HM Treasury and the Foreign, Commonwealth and Development Office (FCDO).

This public-private alliance isn’t symbolic—it’s strategic. The EMDE Investor Taskforce is positioned to engineer real, scalable change by combining market innovation with policy expertise. It’s a blueprint for how finance can serve both profit and the planet.