Prime Minister Boris Johnson has launched the ‘Clean Green Initiative’ at COP26, aimed at supporting developing countries in deploying green technology and growing their economies sustainably.
The Prime Minister has announced a major funding package at COP26 to support the rollout of sustainable infrastructure and “revolutionary” green technology in developing nations, with the aim of tackling climate change and boosting economic growth.
The funding marks the start of the UK’s Clean Green Initiative (CGI), created to scale up public and private investment in quality, sustainable infrastructure globally. The CGI forms part of the UK’s contribution to the G7 ‘Build Back Better World’ initiative announced at the Carbis Bay Summit in June.
Under plans for the CGI, the UK would commit £3 billion over the next five years, focused on green growth in developing countries. This is double the amount the UK’s development finance institution, the CDC – which is fully backed by UK aid – invested in climate projects over its previous strategy period from 2017-21.
The £3 billion headline figure includes £200 million for a new Climate Innovation Facility (CIF), a fund which would support the scale-up of technologies to help communities deal with the impacts of climate change, such as drought-resistant agriculture and sustainable forestry, in markets where private investors have been reluctant to take on the risk alone.
It will be delivered by CDC in partnership with the private sector.
Commenting on the funding programme, Prime Minister Boris Johnson said: “I want to see the UK’s green industrial revolution go global. The pace of change on clean technology and infrastructure is incredible, but no country should be left behind in the race to save our planet.
“The climate has often been a silent victim of economic growth and progress – but the opposite should now be true. Through the Clean Green Initiative, we can help to build back better and greener from the pandemic and put the world on the path to a more sustainable future.”
In an opening address to world leaders at the COP26 event today, the Prime Minister added that the developed world must “recognise the special responsibility we have to help everybody else.”
Mr Johnson will also take part in an Action and Solidarity Roundtable this afternoon, alongside the leaders of India, the US and 24 other countries.
Green energy finance
Separately, the government said the UK aid-backed Private Infrastructure Development Group (PIDG) will also commit more than £210 million to transformational “green projects” in developing countries.
Financing is to be awarded to schemes including electric vehicle (EV) manufacturing in India, green bonds in Vietnam and solar power in Burkina Faso, Pakistan, Nepal and Chad. These are expected to mobilise more than £470 million in additional private sector finance.
PIDG is a multi-donor institution, based in the UK and funded by the government alongside a group of like-minded donors. The UK provides approximately 70% of the funding to PIDG, all of which is classified as overseas development assistance. The other PIDG owners include the agencies of The Netherlands, Switzerland, Sweden and Australia.
In addition, the UK will offer a package of guarantees to multilateral development banks, aimed at supporting investments in climate-related projects in India and across Africa.
A new ‘Room to Run’ guarantee to the African Development Bank (AfDB) is expected to unlock up to £1.45 billion in new financing for projects across the continent, half of which will support countries in adapting to the impacts of climate change.
The Room to Run guarantee is expected to be live from early 2022, following final approvals.
The UK will also provide an ‘India Green Guarantee’ to the World Bank, to unlock an additional £750 million for green projects across India. The financing will support clean and resilient infrastructure in sectors such as clean energy, transport and urban development.
Foreign Secretary, Liz Truss said: “Developing countries need the right form of investment to help drive clean growth, whilst dealing with the impacts of climate change.
“The opportunities are clear and this new initiative will enable us to seize them, working closely with our allies to deliver honest and responsible investment and cleaner and more reliable infrastructure in the developing world.”
The government said the UK would work via the CGI, and with the support of Mark Carney in his role as the PM’s Finance Adviser for COP26, to support country partnership platforms which would make it easier for vulnerable countries to get access to climate finance.
These national platforms would coordinate between governments, donors, development banks and the private sector to connect the pipelines of green projects with funding and investments.