February 06, (THEWILL) – The United Kingdom is deepening its global leadership in green finance with a series of strategic initiatives aimed at mobilising investment for sustainable development. Minister Dodds reaffirmed the UK’s commitment to this cause in a speech to financial sector stakeholders, including pension funds, insurers, banks, and development finance organisations.
His address followed a market-opening ceremony at the London Stock Exchange, where the UK government celebrated the listing of a new financial mechanism designed to accelerate the transition to a net-zero economy.
Long recognised as a global financial hub, London has now taken a significant step forward in shaping the future of sustainable finance.
CEO of the London Stock Exchange, Julia Hoggett, highlighted the role of investment flows in driving sustainable growth both within the UK and globally.
She praised the listing of the Climate Investment Funds’ Capital Markets Mechanism, describing it as a groundbreaking bond issuance program that not only introduces an innovative financing tool but also channels crucial investment into clean and sustainable assets.
Launched in 2008, the Climate Investment Funds have been instrumental in financing climate-related projects across emerging markets and developing economies.
CIF has successfully leveraged over $64 billion from an initial $12.3 billion in donor contributions, funding more than 400 projects across 80 countries in areas such as renewable energy, climate resilience, and low-carbon development.
The UK, a leading donor to CIF and chair of its Joint Trust Fund Committee, has played a key role in shaping its investment strategies.
Among the most innovative financing mechanisms under CIF is the CIF Capital Markets Mechanism launched by the UK Prime Minister at COP29.
This mechanism enables future loan repayments from past clean technology investments to be leveraged through bond issuances in global capital markets.
The first bonds under this program were issued at the London Stock Exchange in January 2025, marking a significant milestone in scaling up green finance.
By transforming past investments into new financing opportunities, the CCMM ensures that climate projects receive sustained funding without relying solely on new donor contributions.
Another key initiative driving green finance is MOBILIST (Mobilising Institutional Capital Through Listed Product Structures), a flagship UK government program designed to bridge the gap between institutional capital and sustainable investment opportunities.
MOBILIST identifies and invests in scalable transactions on public markets that align with climate transition goals and the Sustainable Development Goals.
One of MOBILIST’s standout investments is its backing of Citicore Renewable Energy Corporation in the Philippines.
In June 2024, the program provided a £9.9 million local currency investment in CREC’s initial public offering (IPO) on the Philippines Stock Exchange.
Similarly, MOBILIST invested £4 million in Bayfront Infrastructure Capital IV, a securitisation vehicle listed on the Singapore Stock Exchange in September 2023.
This initiative, valued at $410 million, is designed to “green” bank balance sheets in Southeast Asia and attract international investors to infrastructure projects in developing countries.
With £90.5 million in private investment mobilised, Bayfront has achieved an impressive mobilisation ratio of 22.9.
Beyond individual projects, the UK’s commitment to green finance is about leveraging its expertise in financial markets to lead the global transition to a net-zero economy.
Minister Dodds stressed that these initiatives are not just about addressing climate change—they also represent a major economic opportunity.
By attracting institutional investors to green finance, the UK is demonstrating the strength of its financial markets and the growing demand for sustainable investment products.
The government, in collaboration with partners such as the World Bank, aims to drive global action on economic growth through green investment.
Echoing this sentiment, Julia Hoggett of the London Stock Exchange noted that London’s capital markets have long been at the forefront of directing investment flows to where they are needed most.
The listing of the CCMM and other green financial instruments is part of a broader effort to ensure sustainable investment continues to expand.
Moving forward, the UK government is expected to deepen its efforts to mobilise capital for sustainable investment.
The success of CIF, CCMM, and MOBILIST provides a strong foundation for further innovation in green finance.
Janefrances Ebere Chibuzor is a Tourism Writer at THEWILL
