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July 29, 2024<\/strong> \u2013 Rio de Janeiro, Brazil \u2013 United States Secretary of the Treasury, Janet Yellen, alongside South African Finance Minister Enoch Godongwana, praised continued progress being made by members of the Investor Leadership Network and the Bellagio Private Capital Mobilization Consortium toward its goals of increasing investment flows of institutional capital into emerging markets.<\/p>\n Today\u2019s announcement highlights progress made toward the Emerging Markets Transition Debt (EMTD) initiative. Under this initiative, investors have committed to invest $400 million into the energy transition in emerging markets, with a focus on investments in three areas: clean infrastructure, clean technology, and decarbonization.<\/p>\n As part of EMTD, ILN members Ninety One, CDPQ, and OMERS, alongside other institutional investors including the UK\u2019s Legal and General Investment Management and Wiltshire Pension Fund, have expressed interest in contributing commercial capital to a new private sector initiative \u2013 \u201cEmerging Markets Transition Debt\u201d\u2013 a debt portfolio\u00a0that will invest, subject to their customary approval requirements, an initial $400 million\u00a0into the energy transition in emerging markets \u2013 with a focus on investments in three areas: clean infrastructure, clean technology, and decarbonization. For many of the investors involved,\u00a0the participation in this initiative would\u00a0represent a new step forward aimed at helping to close the important financing gap in the decarbonization of emerging and developing economies.<\/p>\n The purpose of the EMTD initiative\u00a0is to provide companies in emerging markets with commercial financing to make critical investments, including in\u00a0low-emission infrastructure\u00a0and in heavy emitting companies with a credible transition plan\u2014helping reduce carbon emissions and supporting the global energy transition. This approach is consistent with the goals of the Partnership for Global Infrastructure and Investment (PGII), an initiative that President Biden and G7 leaders launched in 2022.<\/p>\n The Bellagio Consortium was launched in Paris by Secretary Yellen as a partnership between the US Treasury and the Investor Leadership Network \u2013 with the support of The Rockefeller Foundation – to undertake a variety of work aimed at increasing institutional investors climate- and development-aligned investment in emerging markets over the coming years.<\/p>\n Significant progress has been made since the launch in 2023. At COP28 in Dubai, the Consortium and the ILN announced a key partnership with the United States Trade and Development Agency (USTDA) to provide $100 million through a technical assistance funding window to help prepare projects in key emerging markets for investment. During the 2024 Spring Meetings of the World Bank and International Monetary Fund, the ILN, The Rockefeller Foundation, and the U.S. Treasury co-hosted a first-of-its-kind Forum for Chief Investment and Chief Risk Officers from institutional investment groups to address barriers to making these kinds of investments into emerging markets and developing countries to finance critical climate projects.<\/p>\n Hon. Janet Yellen, United States Secretary of the Treasury: <\/strong>\u201cThis new initiative advances key Treasury priorities. Since the start of the Biden-Harris Administration, Treasury has been actively pursuing work to promote economic growth, stability, and resilience in countries around the world, including by equipping countries to accelerate their energy transitions and realize their climate ambitions.<\/p>\n \u201cTo support these goals, President Biden and G7 leaders launched the Partnership for Global Infrastructure and Investment, through which we are driving investment flows into critical sectors that advance inclusive and sustainable growth and combat climate change around the world.\u00a0 And as part of PGII, we have been engaging with investors like those in the ILN to find ways to increase institutional investors\u2019 climate- and development-aligned investment in emerging markets\u2014leading to this new initiative.<\/p>\n \u201cWe are optimistic that all these efforts will lead an increasing number of investors to explore new opportunities in emerging markets, driving economic growth and dynamism.\u201d<\/p>\n Marc-Andr\u00e9 Blanchard, ILN Co-Chair and Executive Vice-President and Head of CDPQ Global and Global Head of Sustainability, CDPQ:\u00a0<\/strong>\u201cInstitutional investors have a leadership role to play in the transition and finance opportunities like the EMTD fund can provide a solution by focusing on private sector investments. Aligned with our goal to deploy constructive capital to decarbonize the global economy, this initiative \u2013 alongside the U.S. Treasury and ILN \u2013 demonstrates CDPQ\u2019s desire to actively participate in the energy transition and to have an enduring impact.\u201d<\/p>\n Hendrik du Toit, ILN Co-Chair and Founder & Chief Executive, Ninety One: <\/strong>\u201cWe are grateful to Secretary Yellen for her support as well as the investors who have anchored the strategy, including ILN members CDPQ and OMERS and UK investors LGIM and Wiltshire Pension Fund.\u201d<\/p>\n \u201cMomentum is building for the emerging market energy transition, and while there are real risks that need to be addressed in these markets, the perception of risk is much higher than realized risks historically.\u00a0So far institutional investors\u2019 investment in emerging markets has been largely focused on public listed equities and sovereign debt.\u00a0\u00a0 However, much of the investment in the energy transition \u2013 particularly in middle income emerging markets- is required in the form of private equity, private debt, project debt and corporate debt.\u00a0 The Emerging Market Transition Debt initiative is a mechanism to both allocate capital to the emerging market energy transition and to catalyze further such investment.\u00a0 We believe that this is a crucial opportunity to have significant real-world impact for both climate and development goals. A successful global energy transition is not possible without a successful emerging markets transition.\u201d<\/p>\n Amy Hepburn, Chief Executive Officer, Investor Leadership Network:<\/strong> \u201cWe are excited to stand here alongside Secretary Yellen, Minister Godongwana and our partners to celebrate this important milestone of progress for the Bellagio Private Capital Mobilization Consortium,\u201d said Amy Hepburn, CEO of the Investor Leadership Network.\u201d<\/p>\n \u201cThis milestone underscores that the right kinds of public-private partnerships, built to be focused on building trust among parties, learning from each other, and seeking new ways to look at old problems, can break down barriers that once seemed insurmountable. We are looking forward to continued progress from ILN members and Consortium, especially as we look toward our Global Investor Forum later this year in Cape Town, South Africa.\u201d<\/p>\n Dr. Rajiv J. Shah, President, The Rockefeller Foundation<\/strong>: \u201cTo advance opportunity for vulnerable people and reverse the climate crisis, we must unleash institutional capital in emerging markets and developing countries. This initiative is proof of what\u2019s possible when diverse partners come together to unlock private capital for critical energy transition, climate resilience, and other investments in the developing world. The Rockefeller Foundation is proud help advance this effort, which began in a convening at our Bellagio Center, and others to bring power \u2013 and progress \u2013 to those without electricity access.\u201d<\/p>\n Notes to Editors<\/u><\/strong><\/p>\n ABOUT THE EMERGING MARKET TRANSITION DEBT INITIATIVE<\/u><\/strong><\/p>\n The Emerging Market Transition Debt (EMTD) strategy is a new investment vehicle managed by Ninety One to catalyze investment into the EM energy transition. The strategy will aim to provide EM companies with commercial financing to support efforts in reducing real-world carbon emissions. It will provide credit to high-emitting companies which have strong potential to reduce emissions. This is a significant way to help bring about an energy transition, with the simultaneous goal of providing investors with an appropriate risk-adjusted return.<\/p>\n The EMTD strategy has been developed in collaboration with several global capital providers and advisors, including Cambridge Associates and Wiltshire Pension Fund.<\/p>\n ABOUT THE INVESTOR LEADERSHIP NETWORK<\/u><\/strong><\/p>\n The Investor Leadership Network was launched at the 2018 G7 to facilitate and accelerate collaboration by leading institutional investors to drive the transition to a sustainable and inclusive global economy. As the leading network of investors taking action for people, planet and prosperity, the CEO-led group is composed of 13 global institutional investors representative of six countries, with over US$10 trillion in assets under management.<\/p>\n Operating as an open and collaborative platform, members pool resources, expertise, and networks to develop, promote and deliver action-based and scalable initiatives on major global issues such as climate change; equity, diversity and inclusion; and private capital mobilization. Every initiative is evidence-based, measurable, and drives macro change. Member commitment is leveraged through a central convening body, the Secretariat, that threads the needle among initiatives and tracks and reports impact.<\/p>\n The ILN benefits from the participation and support of various partners, including governments, foundations, nonprofits, multilateral institutions, and other industry bodies, while remaining fully autonomous.<\/p>\n ABOUT CDPQ<\/u><\/strong><\/p>\n At CDPQ, we invest constructively to generate sustainable returns over the long term. As a global investment group managing funds for public pension and insurance plans, we work alongside our partners to build enterprises that drive performance and progress. We are active in the major financial markets, private equity, infrastructure, real estate and private debt. As at December 31, 2023, CDPQ\u2019s net assets totalled CAD\u00a0434\u00a0billion. For more information, visit cdpq.com<\/a>, consult our LinkedIn<\/a> or Instagram<\/a> pages, or follow us on X<\/a>.<\/p>\n CDPQ is a registered trademark owned by Caisse de d\u00e9p\u00f4t et placement du Qu\u00e9bec and licensed for use by its subsidiaries.\u00a0<\/em><\/p>\n ABOUT NINETY ONE<\/u><\/strong><\/p>\n Ninety One is an active, global investment manager managing \u00a3128.6 billion in assets (as at 30.06.24). Our goal is to provide long-term investment returns for our clients while making a positive difference to people and the planet. Established in South Africa in 1991, as Investec Asset Management, the firm began as a small start-up offering domestic investments in an emerging market. In 2020, as a global firm proud of our emerging market roots, we demerged to become Ninety One.\u00a0 We are committed to developing specialist investment teams organically. Our heritage and approach let us bring a different perspective to active and sustainable investing across equities, fixed income, multi-asset and alternatives to our clients – institutions, advisors and individual investors around the world.<\/p>\n For more information, please visit NinetyOne.com<\/a><\/p>\n ABOUT The Rockefeller Foundation<\/u><\/strong><\/p>\n The Rockefeller Foundation is a pioneering philanthropy built on collaborative partnerships at the frontiers of science, technology, and innovation that enable individuals, families, and communities to flourish. We make big bets to promote the well-being of humanity. Today, we are focused on advancing human opportunity and reversing the climate crisis by transforming systems in food, health, energy, and finance. For more information, sign up for our newsletter at\u00a0www.rockefellerfoundation.org\/subscribe<\/a>\u00a0and follow us on X @RockefellerFdn and LI @the-rockefeller-foundation.<\/p>\n Media Contacts<\/u><\/strong><\/p>\n Investor Leadership Network<\/strong><\/p>\n Steve Kee<\/p>\n +416-841-5669<\/p>\n steve@investorleadershipnetwork.org<\/a><\/p>\n Ninety One<\/strong><\/p>\n Jeannie Dumas<\/p>\n +44 20 3938 3084<\/p>\n +447931707108<\/p>\n