United Kingdom Establishes Investor Group for Emerging Economies
UK Announces Emerging Markets Investor Taskforce
The UK government has launched a new Emerging Markets and Developing Economies (EMDE) Investor Taskforce, aiming to promote investment in emerging and developing markets. The taskforce, which will be secretariat-led by the Investor Strategies Programme Director, will focus on supporting sustainable investment and overseeing initiatives linked to sustainable financing, including alignment with the Paris Agreement and net zero commitments.
According to Baroness Chapman, the UK's minister of state for international development, emerging markets are expected to contribute 65% of global economic growth by 2035. However, the financing gap for climate solutions in these economies is estimated to be $1.8 trillion annually. The EMDE Investor Taskforce aims to address this gap by catalyzing long-term climate capital flows into developing economies in Latin America, South and Southeast Asia, and Africa.
The taskforce will bring together 15 financial sector institutions, including pension funds, insurance companies, asset managers, banks, development finance institutions, and investment consultants. Notable members include Ninety One, Aviva Investors, Phoenix Group, Legal & General, HSBC, Lloyds, Private Infrastructure Development Group, and S&P Global Ratings. In addition, asset owners such as the Church of England Pensions Board, Nest, and People's Pension have signed up.
The Institutional Investors Group on Climate Change (IIGCC) will serve as the secretariat for the taskforce, aligning with their ambition to support investment into climate, transition, and sustainable opportunities across emerging markets. IIGCC's role will be to oversee the taskforce's activities and collaborate with third parties.
The EMDE Investor Taskforce is part of the UK's broader efforts to promote inclusive investment opportunities, including backing diverse and emerging fund managers through government-backed initiatives aimed at reducing funding gaps for underrepresented entrepreneurs and managers.
The taskforce's work is timely, as momentum is building for the energy transition in emerging markets and developing economies. Real risks are often overstated compared to historical outcomes, and there is a growing recognition that institutional investment in these markets is crucial for achieving a just and effective energy transition.
While specific details on individual members of the EMDE Investor Taskforce were not provided, it is likely that the taskforce will include representatives from government, investment funds, asset managers, and industry stakeholders, given the typical composition of such taskforces.
The NZI Annual Conference, scheduled for October 21, 2025, at the London Stock Exchange, is not directly related to the EMDE Investor Taskforce. Registration for the conference can be done online.
As the world looks towards a more sustainable future, the EMDE Investor Taskforce represents a significant step in the right direction. By catalyzing long-term climate capital flows into developing economies, the taskforce will help drive economic growth, reduce carbon emissions, and support the transition to a low-carbon economy.
The UK's EMDE Investor Taskforce, focused on sustainable investment, aims to address the $1.8 trillion annual financing gap for climate solutions in emerging markets by catalyzing long-term climate capital flows. This alignment with the Paris Agreement and net zero commitments falls within the scope of environmental-science, as climate-change mitigation efforts are essential for a low-carbon future. Moreover, investment in emerging markets, as supported by the taskforce, can potentially generate substantial returns in finance and generating profit.
