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A big day for climate finance: The COP29 Business, Investment, and Philanthropy Climate Platform (BIPCP) garnered pledges totaling USD 5.4 bn in climate finance last week, according to a statement.
What we know about the breakdown:
- The Asian Development Bank (ADB) committed USD 3.5 bn to a new program addressing the impacts of melting glaciers,
- Azerbaijan’s banking sector pledged USD 1.2 bn for green projects until 2030,
- And Sweden said it would contribute USD 730 mn to the UN Green Climate Fund.
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There’s more: The CREO Family Office Syndicate (CREO) and the Investor Leadership Network (ILN) — which alone convene investment players worth more than USD 10 tn in assets — launched a joint initiative to accelerate private market investments in climate and sustainability, according to a statement. The collaboration aims to leverage the combined expertise and resources of family offices, pension funds, sovereign wealth funds, endowments, and insurance companies to scale climate finance, particularly in emerging markets. The initiative’s focus will be on three main areas:
- Developing private market investment data focused on climate to inform decision-making and value-creation
- Building models and best practices to enhance climate-focused portfolios
- Derisking solutions to increasing private capital deployment
Innovation Package to mobilize up to USD 2 bn for farming adaptation: The Agriculture Innovation Mechanism for Scale (AIM for Scale) has launched an Innovation Package aiming to mobilize over USD 1 bn over the next three years to help farmers adapt to climate change, according to a press release. The AIM for Scale Weather Package — a collaboration between AIM for Scale and the Innovation Commission for Climate Change, Food Security, and Agriculture — will leverage AI-powered solutions to help forecasting entities generate “high-quality, farmer-centered forecasts,” the statement said. The goal is to help farmers make more informed decisions, improve resilience, and adapt to weather fluctuations. The World Meteorological Organization will supervise the initiative and assist.
Who is contributing?
- ADB will invest around USD 300 mn in weather forecasts for farmers in Asia and the Pacific from 2025 to 2027, as well as USD 600k for a technical assistance grant to attract investment.
- The Inter-American Development Bank will incorporate weather forecasts in its USD 280 mn portfolio of loans over the next three years and has programmed USD 600k of grant resources for AI forecasts in Latin America and the Caribbean.
- The World Bank is investing USD 1.46 bn in Data, Digital Agriculture, and Innovation, with USD 591 mn for Africa.
Alterra ropes in Rockefeller support: UAE’s Alterra fund, the Global Energy Alliance for People and Planet (GEAPP), and The Rockefeller Foundation signed an MoU to enhance cooperation in climate finance, according to a statement last week. The partnership aims to mobilize diverse capital sources — public, private, and philanthropic — to support clean energy investments in the Global South, addressing the significant shortfall in climate finance. Alterra — founded by the UAE in COP28 with a USD 30 bn pledge — aims to mobilize USD 250 bn globally by 2030 for climate finance.
Major oil players to support energy access: Oil and gas giants TotalEnergies, BP, Equinor, and Shell pledged USD 500 mn to increase affordable energy access in sub-Saharan Africa and South and Southeast Asia, according to a statement published on Friday. The commitment aims to fund “high impact” projects across the energy value chain, including domestic solar energy systems, micro-electricity grids, e-mobility technologies, and clean cooking solutions, among others. The investment — representing about 0.7% of the companies’ combined USD 70 bn net profit in 2023 — will be managed by a global private equity firm through tenders, Reuters reported on Friday. The announcement did not name the selected firm.
ON THE POLICY SIDE OF THINGS-
UAE has launched the Global Energy Efficiency Alliance at COP29 aiming to double global energy efficiency rates by 2030, Wam reported on Friday. This initiative builds on the UAE Consensus from COP28 and seeks to encourage investments in energy efficiency projects, develop supportive policies and technologies, and promote capacity building. A particular focus will be placed on aiding African nations with financing and technological solutions to enhance their energy efficiency capabilities, Sharif Al Olama, the energy undersecretary at UAE’s Ministry of Energy and Infrastructure, told WAM.
ALSO- WGEO + Palau partner on climate action: The World Green Economy Organisation (WGEO) and the Government of Palau signed an MoU to advance green economy initiatives and climate action, Wam reports. The partnership focuses on fostering low-carbon solutions and ocean conservation, crucial for Palau as a Small Island Developing State (SIDS).
