EMDE Investor Taskforce

Overview

The EMDE Investor Taskforce brings together leaders from across the UK investment community, convened by UK Government Ministers, to explore recommendations from 'The UK as a Climate Finance Hub' report. The Taskforce will develop practical solutions that support UK institutional investors in considering climate and sustainable investment opportunities across emerging markets and developing economies.

Convened by the Minister of State for International Development and the Economic Secretary to the Treasury, and led by industry, this multi-year initiative aims to strengthen the UK's position as a global hub for sustainable finance while tackling climate change domestically and across the globe.

Who is involved?

The EMDE Investor Taskforce is convened by His Majesty's Treasury and the Foreign, Commonwealth and Development Office. It is industry led, with Ninety One as co-chair and IIGCC serving as its Secretariat.

In this role, IIGCC manages the core operations and administration of the Taskforce.

For more information and to join the Taskforce, please contact Angus Wilson.

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Participating organisations include:

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

The business case

Emerging markets and developing economies 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.

The Taskforce aims to facilitate an increase in 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.

Through efforts to mobilise private capital, the Taskforce will directly support economic growth and help tackle climate change both in the UK and around the world.

The focus

The EMDE Investor Taskforce operates through four complementary workstreams, each addressing critical aspects for unlocking capital from institutional investors towards EMDEs.

Research and opportunity

Co-Chairs – Aviva and Church of England Pensions Board

This workstream develops a research base that will inform and complement the wider work of the Taskforce.

The research centres on two key areas. First, it will undertake scoping work to examine the case for further research on the systemic risk that a failed or delayed climate transition in EMDEs poses to the global financial system and to asset owners (including in the UK), while identifying the opportunities for financing a successful transition. Second, it assesses the potential scope for increased UK asset owner allocations towards climate and development-focused investments across EMDEs.

Capacity building and data

Co-Chairs – Mercer and PIDG

This workstream focuses on equipping UK asset owners with the tools, knowledge, and resources needed to invest effectively across EMDEs.

It develops practical guidance for asset owners looking to adjust internal operations, policies and processes to facilitate increased allocations to EMDEs (within the confines of their investment objectives and fiduciary duty). The workstream also identifies ways to improve the availability, quality and accessibility of both the financial and non-financial data essential for informed decision-making by asset owners investing across EMDEs.

Products

Co-chairs — Ninety-One and Phoenix

This workstream develops actionable resources to scale EMDE-focused investment products across public and private markets.

It showcases innovative deal structures (including blended finance and funded/unfunded ABS etc.), coordinates asset owner input on originate-to-distribute models for DFI/MDB assets and produces thought leadership. The workstream identifies and tackles real barriers asset managers face—such as risk perceptions, project execution challenges, and return expectations—offering practical solutions to mobilize capital for climate and sustainable development goals in EMDEs, with or without concessional and junior capital. The workstream will work with existing initiatives such as the World Bank Private Sector Investment Lab and EBRD mobilisation taskforce and others.

Regulatory environment

Co-Chairs – Phoenix and HSBC

This workstream examines existing policy, regulations and standards to explore how they affect incentives for firms to invest in EMDEs.

It will establish an evidence base for how regulations and standards impact investment decisions in EMDEs and identify any proportionate regulatory amendments that could better incentivise EMDE investment while maintaining appropriate risk management standards. Where relevant, this work will develop recommendations for UK and international policymakers, regulators, standard setters and institutional investors.