On November 8, USAID announced an ambitious target to mobilize $150 billion in public and private climate finance by 2030. USAID will catalyze the majority of this funding from private sector investments—as well as from public sector investments from partner country governments—through targeted programs and partnerships. USAID aims to catalyze 10 dollars of private sector financing for every one dollar of USAID public funding invested. The U.S. Government public funds that USAID invests in these programs and partnerships to catalyze outside investments will be drawn from and aligned with the anticipated $11.4 billion in annual public climate financing announced by President Biden at the UN General Assembly.
This target will be achieved through a series of new and forthcoming partnerships and programs, including:
- USAID will work with partner governments in Colombia, Philippines, South Africa, Vietnam, Indonesia, and India, among others, to mobilize billions of dollars in private finance for renewable energy;
- Launching the Green Recovery Investment Platform (GRIP), which will invest up to $250 million to mobilize $2.5 billion of private finance for adaptation and mitigation by 2027 by creating incentives and reducing risks for large-scale private investment to address the climate finance gap;
- Partnering with the U.S. International Development Finance Corporation to support mitigation and adaptation initiatives, including a loan guarantee on a portfolio of $25 million in loans through the Livelihoods Carbon Fund for carbon credits; and
- Mobilizing public and private finance to transform the agriculture, health, water and other key sectors to achieve lower emissions and increased resilience.
USAID will also align ongoing and future climate finance efforts with the Agency’s forthcoming 2022-2030 Climate Strategy in support of this commitment.