UK Government and Financial Leaders Launch Taskforce to Support Global Economic Growth and Tackle Climate Change

London, Friday 16 May 2025 – Yesterday, the UK Minister for International Development and the Economic Secretary to the Treasury announced the launch of the Emerging Markets and Developing Economies (EMDE) Investor Taskforce, an industry-led initiative dedicated to unlocking private investment aimed at tackling climate change and seizing sustainable growth opportunities across emerging markets and developing economies. These markets are projected to contribute approximately 65% of global economic growth by 2035.  

Meeting global climate goals requires increased investment in sustainable development across EMDEs, which presents significant investment opportunities. It is estimated that investment in both mitigation and adaptation could bring a return of around tenfold by 2100. This approach will enhance the UK financial and professional services sector's £243 billion economic contribution and £110 billion in tax revenue, while protecting and expanding its 2.4 million jobs. 

Addressing the Critical Finance Gap 

Private capital flows into these markets remain far below what is needed to achieve the Sustainable Development Goals (SDGs) with only 18% of climate finance in Africa coming from private sources. Unlocking sustainable investments across EMDEs on a greater scale is central to tackling climate-related risks such as extreme heat, drought, flooding and wildfire which in turn can lead to famine, mass migration and instability. Alongside addressing these major global risks, this investment can help deliver sustainable economic growth in the UK. 

The Taskforce will develop practical solutions such as capacity building and product innovation to overcome barriers that currently constrain long-term private capital from investing at scale into climate, transition, and sustainable investment opportunities in regions including Latin America and the Caribbean, South and South East Asia, and Africa. Without low-carbon and resilient development in these regions, global climate goals cannot be met.   

Public-Private Partnership for Global Impact 

The EMDE Investor Taskforce brings together leaders from 15 major financial services firms, including insurers, pension funds, asset managers, banks, investment consultants, and development finance institutions, with government expertise from the Foreign, Commonwealth and Development Office (FCDO) and HM Treasury. This strong collaborative approach between government and industry will leverage expertise from across the financial sector to drive meaningful change.   

Baroness Chapman, Minister of State for International Development, said: “The Taskforce is a great example of how we are modernising our approach to international development in action. Experts from the UK’s world leading financial sector will help bring opportunities for investors, and help developing economies grow. This is good for those countries, and for the UK. 

These emerging markets are the UK’s economic partners of the future. That’s why it’s so important we get UK private finance for climate and development projects in these countries, which we expect to contribute 65% of global economic growth by 2035.” 

Emma Reynolds, the Economic Secretary to the Treasury, said: "We are committed to make the UK a global hub for climate finance to boost jobs and investment as part of this Government’s Plan for Change. 

“To support this ambition, we are delighted to launch this new taskforce which will work with investors to boost investment and unlock private finance to support emerging markets and developing economies and boost the competitiveness of the UK’s climate finance industry.” 

Hendrik du Toit, Founder and CEO of Ninety One and industry co-chair of the Taskforce, said: “Momentum is building for the energy transition in emerging markets and developing economies. While real risks exist, they are often overstated compared to historical outcomes. To date, institutional investment in EMDEs has largely focused on public equities and sovereign debt. However, achieving a just and effective energy transition requires a significant increase in private equity, private debt, project finance, and corporate capital in emerging markets.  

“Accelerating sustainable investment across EMDEs is key to confronting climate risks and enabling durable, inclusive economic growth globally. The newly formed EMDE Investor Taskforce is a vital step forward, offering practical solutions to help UK institutional investors engage with climate, transition, and sustainable investment opportunities in these markets.  This initiative will play a central role in mobilising capital where it’s needed most and in catalysing broader flows of investment.” 

Stephanie Pfeifer, CEO of IIGCC serving as the Secretariat of the Taskforce, said: “IIGCC is proud to serve as the secretariat for the taskforce. The work it will undertake aligns with our ambition to support investment into climate, transition, and sustainable opportunities across emerging markets. We look forward to playing a constructive role across the public and private sectors to make the taskforce a success.” 

Participating organisations include: Aviva Investors, BII, Border to Coast, Church of England Pensions Board, HSBC, Legal & General, Lloyds, Nest, Ninety One, People’s Pension, Phoenix Group, Private Infrastructure Development Group (PIDG), S&P Global Ratings. 

UK Leadership in Sustainable Finance 

Building on its existing leadership in sustainable finance, the UK is uniquely positioned to be the global hub that accelerates the mobilisation of private investment towards EMDEs. The Taskforce aims to strengthen this position while supporting sustainable economic development and responsible investment in these markets. It will explore the recommendations from The UK as a Climate Finance Hub report through a number of technical workstreams focused on identifying opportunities and addressing key systemic barriers to capital flows. 

The Institutional Investors Group on Climate Change (IIGCC) will serve as Secretariat.  

ENDS 

For more information, see here or contact: media@EMDEInvestorTaskforce.org 

About the Foreign, Commonwealth & Development Office 

We lead the UK’s diplomatic, development and consular work around the world. FCDO is a ministerial department, supported by 11 agencies and public bodies. Read more about what we do 

About Ninety One 

Ninety One is an active, global investment manager managing £130.8 billion in assets (31.03.25). Our goal is to provide long-term investment returns for our clients while making a positive difference to people and the planet. Established in South Africa in 1991, as Investec Asset Management, the firm began as a small start-up offering domestic investments in an emerging market. In 2020, as a global firm proud of our emerging market roots, we demerged to become Ninety One.  We are committed to developing specialist investment teams organically. Our heritage and approach let us bring a different perspective to active and sustainable investing across equities, fixed income, multi-asset and alternatives to our clients - institutions, advisors and individual investors around the world. 

For more information, please visit NinetyOne.com 

About IIGCC 

IIGCC is an investor-led membership organisation. We bring the investment community together to navigate the risks and opportunities of the transition and support progress towards a net zero and climate resilient future. We work with our members to create guidance, tools, frameworks and resources that can help them, in their individual contexts, to manage climate-related financial risk within their individual portfolios. Our work also supports investors to make the most of opportunities presented by the transition towards a decarbonised global economy and the realities of a changing climate. We have 400+ members across 20+ countries. More information at www.iigcc.org