UK to Raise $40bn for Global Infrastructure Projects
Prime Minister Rishi Sunak, at the G7 in Japan, has reaffirmed the UK's commitment to mobilise significant public and private funding for the Sustainable Development Goals (SDGs).
British International Investment, the UK's development finance institution, is making its first investment in the Indo-Pacific region. A $15 million (£12 million) investment in the SUSI Asia Energy Transition Fund will support renewable energy, energy storage, and microgrid projects across the continent.
The global infrastructure investment initiative was launched during the UK's presidency of the G7 in Carbis Bay in 2021. Its purpose is to provide transparent and reliable financing sources for crucial infrastructure projects in low and middle-income countries, ranging from bridges and roads to renewable energy grids.
Ahead of a side event on the Partnership for Global Infrastructure Investment at the G7, the Prime Minister has announced the UK's aim to mobilise $40 billion in financing for sustainable infrastructure and economic development by the end of 2027.
The UK has already contributed to various projects, such as wind and solar initiatives in India and sustainable energy supplies for African hospitals, through public and private financing.
Prime Minister Rishi Sunak highlighted the power of responsible private investment and its role in constructing ports in Senegal and Somaliland, hydropower projects in Rwanda, and offshore wind developments in India. The UK is dedicated to ensuring the Partnership for Global Infrastructure and Investment fulfills the world's financing needs to uplift communities from poverty.
Additionally, the UK is collaborating with G7 partners to reform the international tax architecture and make the global financial system more responsive to the requirements of developing countries. One example is the inclusion of Climate Resilient Debt Clauses (CRDCs) in new lending agreements, allowing debt repayments to be suspended when climate-related crises occur, thus enabling quick crisis response and resource allocation.
The UK's Export Finance, as the first Export Credit Agency to offer CRDCs, is set to announce the first deals utilising this approach in the coming months. These efforts are part of a broader initiative to establish a larger, fairer, and more effective international financial system in collaboration with partners.
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Source: UK Govt.
