The UK government has announced a landmark partnership with the financial sector to address the climate crisis and drive economic growth, both domestically and in emerging markets. Minister for Development Anneliese Dodds unveiled the initiative at the London Stock Exchange on Monday, highlighting key funding and investment mechanisms designed to support sustainable development.
As part of the announcement, the UK government pledged up to £100 million for its flagship public markets programme, MOBILIST. This initiative will provide businesses focused on delivering the United Nations’ Sustainable Development Goals (SDGs) with anchor funding and expert advice to facilitate their listing on global stock exchanges. The funding is expected to generate between £400 million and £600 million in new investments across Asia, Africa, and Latin America.
Dodds also celebrated the recent issuance of the first Climate Investment Fund (CIF) Capital Markets Mechanism (CCMM) bond, which raised $500 million (£400 million) for clean energy and technology projects in low- and middle-income countries. Launched by the Prime Minister at COP29, the CCMM is designed to leverage future loan repayments by issuing bonds on capital markets, increasing private-sector involvement in climate finance.
Speaking at the event, Minister Dodds commended the “expertise, experience, and dynamism” of the UK financial sector, emphasizing its role in driving sustainable growth. She underscored the government’s commitment to reforming the global financial system to enhance opportunities and stability, ensuring that UK businesses can contribute to and benefit from economic advancements in the Global South.
“With businesses and the government working hand in hand to drive investment in the Global South, we can unlock growth, jobs, trade, investment, and pride in our economy overseas and here at home,” said Dodds. “Through partnerships like this, we will deliver on the Plan for Change, drive domestic growth, and create a world free from poverty on a liveable planet.”
UK Climate Minister Kerry McCarthy echoed this sentiment, calling the issuance of the CCMM bond a “historic moment” in climate finance. She emphasized that public finance alone cannot meet the scale of the climate crisis, and private investment is essential to supporting countries most affected by climate change.
“Its listing in the UK positions London as a green finance capital. By working with partners such as the World Bank, the UK can drive the action needed to grow the economy and reap the rewards of net zero,” McCarthy said.
The announcements were made during a speech to key figures in the UK financial sector, including pension funds, insurers, banks, and development finance organisations, following a market-opening ceremony at the London Stock Exchange.
London Stock Exchange CEO Julia Hoggett welcomed the initiatives, highlighting the importance of investment flows in driving sustainable growth. “London’s capital markets have long played a leading role in directing capital to where it is needed, and we welcome the focus on fuelling growth and supporting the just transition to net zero,” she said.
The UK government’s approach emphasizes mobilizing private sector finance to support emerging markets, create new export opportunities, and strengthen global economic resilience. By fostering investment in clean energy and sustainable infrastructure, the partnership aims to address key drivers of climate change, economic decline, and global instability while positioning the UK as a leader in green finance.
