• Ambitious Climate Finance Goal: CIF’s Capital Market Mechanism aims to raise up to $75 billion for clean energy projects in developing countries, with a significant portion sourced from the private sector.
• Investment-Grade Bonds: The scheme will issue investment-grade bonds listed on the London Stock Exchange, facilitating global climate funding and energy infrastructure development.
• UK’s Leadership in Green Finance: The launch bolsters London’s status as a green finance hub, reinforcing the UK’s commitment to global climate finance.

The Climate Investment Funds (CIF) has launched its ambitious Capital Market Mechanism (CCMM) on the London Stock Exchange (LSE), designed to raise up to $75 billion (£58 billion) to finance clean energy projects in developing nations. This innovative financial initiative marks a pivotal step in global climate funding, aiming to direct substantial private sector capital into impactful green infrastructure.

The World Bank, acting as trustee, supports the mechanism, which will issue investment-grade bonds to fund projects like solar and wind farms.

Sir Keir Starmer, following his meeting with World Bank President Ajay Banga at the COP29 climate summit in Baku, highlighted the importance of private sector involvement: “It was high time the private sector played their part in this.”

A Downing Street spokesperson emphasized the significance of the initiative: “The Prime Minister welcomed the World Bank’s ambition… This shows London as a green finance capital and bolsters Britain as an attractive place to invest in the future.”

CIF, established in 2008, pools resources from contributors, including the UK, to fund green initiatives globally.

Gareth Redmond-King of the Energy and Climate Intelligence Unit noted the UK’s leadership: “Hosting the CIF market mechanism in London… is a powerful signal of the UK’s commitment to lead globally in mobilising the climate finance needed from all sources, to support developing nations.”

This initiative follows the UK’s pledge at COP29 to cut carbon emissions by 81% by 2035, aligning with Climate Change Committee recommendations. This goal reflects the nation’s commitment to its nationally determined contribution (NDC) and global climate action.

Ajay Banga, World Bank President, affirmed: “Success will not be measured solely by the funds we raise, but by the real-world impact those funds have on the ground.” This statement underscores CCMM’s mission to channel significant financing towards sustainable development and energy transformation in economically vulnerable regions.

“Today’s public listing of the CIF Capital Markets Mechanism is a testament to ingenuity and collaboration in the face of shared crisis,” said Tariye Gbadegesin, CEO of the Climate Investment Funds. “At COP29, leaders from all sectors have been challenged to rapidly ramp up climate finance… CCMM will mobilize private capital at scale and direct it to high-impact clean energy and clean technology investments.”

Established in July 2024, CIF Capital Markets Mechanism channels reflows from CIF’s Clean Technology Fund (CTF) and collaborates with six AAA-rated multilateral development banks. The World Bank serves as both Treasury Manager and Trustee, reinforcing the initiative’s robust framework. The bond program’s debut follows strategic partnerships with BofA Securities, BNP Paribas, HSBC, and TD Securities as lead managers.

David Schwimmer, CEO of the London Stock Exchange Group, highlighted the program’s significance: “The listing… supported by the World Bank… is a significant milestone for the market. This innovative financing tool aligns with our strategy to enable sustainable growth through capital raising from global investors.”

Investor outreach is underway to prepare for the initial bond issuance, drawing interest through CIF Capital Markets Mechanism strong credit ratings and financial structure. “Success will not be measured solely by the funds we raise, but by the real-world impact…,” noted Ajay Banga, President of the World Bank Group.

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This development builds on CIF’s track record of over 16 years, unlocking $12 billion for first-of-a-kind climate solutions across 80+ developing nations. Global leaders echo the mechanism’s transformative potential.

Edward Miliband, UK Secretary of State for Energy Security and Net Zero, affirmed, “This innovative mechanism will mobilize billions more in climate finance… crucial for accelerating the global clean energy transition.”