Private Talks Between UK and US Result in $2bn Pledged to Developing Nations for Climate Financing
Private talks between the United Kingdom and the United States have resulted in $2 billion of commitments to support developing countries for climate financing.
At a joint conference in Windsor yesterday by the UK and US, financiers and philanthropists have pledged more than $2 billion to assist nations in decarbonizing their energy systems and adapting to the increasing effects of climate change.
Yesterday, US Climate Envoy John Kerry and Energy Security and Net Zero Secretary Grant Shapps held a 'climate finance mobilization forum' which resulted in several new private sector climate finance commitments, according to a statement released by the White House.
A total of approximately $1bn has been allocated to green initiatives in developing areas, such as regenerative agriculture, agroforestry, and water management initiatives, through a new joint venture headed by Builders Vision, a venture capital firm started by Walmart heir Lukas Walton, the Japanese trading company
Mitsui & Co, and asset management firm Renewables Resources Group, according to the announcement.
At the event, Builders Vision set aside an additional $100 million for investments and grants related to ocean conservation within developing countries.
Furthermore, the Tony Elumelu Foundation, based in Lagos, Nigeria, declared its mission to create a $500 million 'Coalition for African Entrepreneurs'. Impact investor LeapFrog Investments similarly announced that they would be investing the same amount of money in businesses located in the built environment, energy, mobility, and food industries in Asia and Africa to battle the effects of climate change.
In 2020, the Sustainable Market Initiative (SMI) declared the formation of the Terra Carta Accelerator Fund with an investment of $100m to finance natural capital undertakings and supply chains in rising nations. Spearheaded by King Charles, the endeavour unites businesses devoted to achieving a positive future for nature and net zero.
Andrew Forrest's Forrest Group - incorporating firms, philanthropic efforts, and private investments - declared its intent to pursue a "combined portfolio of philanthropic, private, and public funding" to expand its 'green' metal companies in emerging countries.
The White House declared that further advancement of utilizing private capital for developing nations would be encouraged at the high-level forum for business and philanthropy delivery arranged for COP28 in Dubai this December.
The Leaders Climate Action Summit portion will include a forum that concentrates on "breaking down obstacles to progress, showing successes, and recognizing potentials for cooperation and increased momentum," as stated by the White House.
Criticism of the US and UK governments by developing countries and green groups over their failure to deliver on direct financial contributions in line with prior climate change promises has been voiced amidst the meeting.
Yesterday, Shapps declared that the UK will keep their commitment to providing £11.6bn for climate finance by 2026. However, documents that have been leaked demonstrate that current levels of funding would have to be significantly augmented over the following two years for the goals to be met.