Institutional investors announce new net-zero investment initiative

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The African Green Infrastructure Investment Bank (AfGIIB) has announced its model law on Institutional Investor-Public Partnerships (IIPP) initiative (ML-IIPP).

First adapted by the African Unions’ 5 percent institutional infrastructure investment agenda initiative, the ML-IIPP framework will assist emerging and developing countries to derisk and meet their net-zero capital mobilization goals.

The ML-IIPP initiative is a collaboration led by the AfGIIB and its global partner the CFA Asset Owners Council (AoC), in association with global law firm DLA-Piper. The framework initiative aims to help policy makers and global institutional investors mobilize private capital at scale; deploy capital at speed; deepen and green secondary and capital markets; and stimulate and support innovative project developers.

Essentially, it provides a new infrastructure-investment-procurement framework between governments and global institutional investors for green and net-zero infrastructure investment programs and projects.

“The legal and regulatory architecture in its current form is incapable of delivering the demands and needs of net-zero targets,” said Hubert Danso, chairman of Africa investor (Ai), CBN, ASWPFF and CFA Asset Owners Council. “This is especially in terms of capital formation at scale and accelerated capital deployment — fostered through fast-tracked procurement, and an unprecedented acceleration of financial close (rate and volume) for bankable and investable green public and private infrastructure investment projects and programs.”

He added, “This Model Law for IIPPs will therefore design the framework to deliver greater public-private finance mandate alignment and more catalytic private investment pathways. These fast track, scale, and de-risk private capitals’ participation in the green and just transition in emerging and developing countries, implemented through IIPPs.”

To read more about the initiative, click here.