The UK’s Minister of State for Development, Anneliese Dodds has announced up to £100 million in funding for MOBILIST, the UK’s flagship public markets programme. The new funding and partnerships aim to unlock investment opportunities as part of a broader development approach to support sustainable economic growth globally.
In line with this, the UK government will collaborate with MOBILIST to advance its Plan for Change, focusing on tackling climate change while driving economic growth both at home and in developing countries.
Speaking at the London Stock Exchange on Monday, February 3, Dodds emphasised the crucial role of the UK financial sector in addressing the climate crisis and boosting growth in the Global South. She highlighted the government’s commitment to leveraging the expertise, experience, and dynamism of the financial services industry to meet global challenges and accelerate the delivery of the UN’s Sustainable Development Goals (SDGs).
Dodds underscored how investment in emerging markets presents an opportunity for the UK financial sector to integrate its expertise with the economies and technologies of the future. She added that the government remains committed to international financial reform to create a more stable and opportunity-driven global financial system.
As part of the broader investment initiative, the Minister also celebrated the recent issuance of the first Climate Investment Fund (CIF) Capital Markets Mechanism (CCMM) bond, which successfully raised $500 million (approximately £400 million) for energy and clean technology projects in low- and middle-income countries. The CCMM, launched by the UK Prime Minister at COP29, serves as a financial mechanism to raise capital by leveraging future loan repayments.
Dodds commended these developments, stating that businesses and the government working in partnership would unlock growth, create jobs, and drive investment.
“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,” she said.
“This government is enabling the financial services sector to flourish and use its expertise and depth of capital to invest in the markets and technologies of the future.
“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.”
The £100 million funding for MOBILIST is expected to generate between £400 million and £600 million in new investments across emerging markets in Asia, Africa, and Latin America. These investments will support sustainable development, economic growth, and climate action.
The government’s modern approach to development focuses on mobilising private sector finance to foster growth in emerging markets. This strategy aims to create future export opportunities for the UK, stimulate domestic growth, and fulfil the objectives of the Plan for Change. Additionally, it will contribute to global stability by addressing the root causes of conflict, economic decline, and climate crises in partner nations.
UK Climate Minister Kerry McCarthy hailed the impact of the new financial mechanisms, stating:
“This is a historic moment for tackling the climate crisis, with the first bond raising $500 million to accelerate the global clean energy transition and support the flow of climate finance to developing countries.
“Public finance alone cannot address the scale of this challenge, and this mechanism will help leverage the private finance needed to support those on the frontline of a changing climate.
“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.”
Dodds made these announcements during a speech to leading figures in the UK financial sector, including pension fund managers, insurers, banks, and development finance organizations. Before her address, she participated in a market opening ceremony at the London Stock Exchange.
Julia Hoggett, CEO of the London Stock Exchange, emphasised the significance of these investments, stating:
“Flows of investment are vital to generating sustainable growth both in the UK and around the world. London’s capital markets have long played a leading role in driving capital to where it needs to go, and we welcome the focus on fueling growth and supporting the just transition to net zero.
“As part of these efforts, we are proud to celebrate the listing of the Climate Investment Funds’ Capital Markets Mechanism on the London Stock Exchange. This pioneering bond issuance programme not only brings a new financing tool to our market but is facilitating critical investment in sustainable and clean assets.”
The government’s collaboration with the UK financial sector underscores its commitment to supporting global economic development through innovative financial instruments. By encouraging private sector participation in emerging markets, the UK is positioning itself as a leader in sustainable finance while reinforcing its economic ties with key regions across the world.
Through initiatives like MOBILIST and CCMM, the UK aims to accelerate sustainable economic development, combat climate change, and create new opportunities for both domestic and international investors. As these investments continue to materialise, they are expected to generate long-term economic benefits, fostering resilience in emerging economies while strengthening the UK’s global financial influence.
