Investment Mobilisation Collaboration Alliance (IMCA) is a unique international coordination mechanism that utilises an innovative public-private partnership approach to create concrete pipeline collaboration, support blended finance vehicles, and catalyse private capital for climate action into emerging markets and developing economies at scale and speed.
IMCA was launched at COP28 by the United States and Nordic governments as a new platform for providing blended finance solutions to the immense need for investments in climate mitigation, adaptation and nature in emerging markets, and developing economies. The International Energy Agency estimates that over $2 trillion is needed per year by 2030 just to reduce carbon emissions while addressing the growing energy demand from these markets and economies.
Objectives
IMCA aims to raise catalytic public financing on the scale of millions of USD and through this attract billions of USD from institutional and other private investors towards investments in emerging and developing economies. It will support the Developed Countries Climate Finance Delivery Plan to achieve the $100 billion annual climate investment target, showcasing action towards a new international target for climate finance to be addressed at COP29.
The approach is to increase collaboration across countries, FDIs, and asset owners through project pipeline coordination, collaborative tendering for asset managers for investing in climate and nature, but also, in due course, other SDG themes.
Sporadic landscape on blended finance opportunities, catalytic capital and institutions.
IMCA, Investment Mobilisation Collaboration Alliance
Partners
IMCA
A New Joint Collaboration on Mobilising Climate Finance to Emerging and Developing Markets
Denmark, Finland, Sweden, Norway, and the USA are spearheading a new unique global partnership and pioneering solutions platform on mobilising large-scale private climate financing at speed and scale for emerging markets and developing countries. The Alliance aims to mobilise billions of USD in private capital to de-risk climate investments in mitigation, adaptation, biodiversity and nature before the end of 2025.
IMCA partners made their first announcement of joint support at COP28 under the Blended Finance for the Energy Transition (BFET) programme. BFET is an initiative of the U.S. Department of State, in partnership with USAID, and with catalytic co-funding and support from the Government of Denmark and Investment Fund for Developing Countries (IFU). Catalytic grant funding from the BFET program is expected to mobilize a total of over $1.4 billion of capital to advance emerging markets’ energy transition efforts and help limit global average temperature rise to 1.5°C. The second fund collaboration, the Adaptation Finance Window, currently underway, with a target mobilisation of up to USD 500 million, has attracted a competitive set of proposals from asset managers and is now going through a selection, due diligence and co-creation process. The aim is to announce the winner(s) at COP29.
Achievements
Read the Press Statement for the IMCA Launch.
IMCA is a collaborative partnership between the United States Agency for International Development (USAID), the Ministry for Foreign Affairs of Sweden along with the Swedish International Development Cooperation Agency (Sida), the Ministry for Foreign Affairs of Finland, the Norwegian Agency for Development Cooperation (Norad), the Ministry of Foreign Affairs of Denmark and Denmark’s Investment Fund for Developing Countries (IFU). Dialogues with additional donor countries are ongoing and the initiative welcomes new partners.
The World Climate Foundation and the USAID Climate Finance for Development Accelerator (CFDA) are acting as IMCA’s Operating Partners, with support from the Climate Investment Coalition. Furthermore, IMCA will collaborate with an Asset Owner Advisory Board for strategic support on scoping of possible transactions and private finance incentives.
Organisation
IMCA will initiate processes on origination of transactions for climate finance, including a specific geographic and/or thematic focus within green blended finance, for example clean energy, loss and damage, nature-based solutions, etc. The tendering, due diligence and contracting processes will be scoped and managed by CFDA.
Activities
The work is divided into three workstreams: information sharing on transaction pipelines to facilitate cooperation, collaboration on calls for proposals on climate financing; and collaboration on calls for proposals on broader thematic areas such as education, health, fragility, etc. IMCA will carry out its stakeholder engagement on key international events throughout the year.
The model attached shows the concept idea and actions in governance, workstreams and deliveries for IMCA so far.
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