Invest Cyprus joins new coalition on climate-aligned FDI

Invest Cyprus has joined forces with 14 other esteemed heads of investment agencies and the World Association of Investment Promotion Agencies (WAIPA) in a groundbreaking call for a new coalition on climate-aligned foreign direct investment (FDI).

“Together, we're shaping a sustainable future at #WEF24,” Invest Cyprus said announcing the news on its social media. “As investment promotion authorities (IPAs), we're committed to channeling FDI into tangible, domestic green growth projects. Our collective efforts and expertise are vital in supporting investors to meet their green investment goals.”

In a press release, the World Economic Forum said that at the recent COP28, governments and investors made a series of climate finance and clean technology pledges, some of which will boost overseas project financing. Increasing FDI for climate projects will be essential to meet a daunting climate finance gap, which stands at $5.8-5.9 trillion for developing countries in the pre-2030 period. Blended finance approaches will be particularly important for certain developing and least-developed countries where the pool of private capital is smaller and the costs of borrowing are higher.

“Investment promotion agencies (IPAs) can help anchor these new commitments in tangible domestic green growth projects, making FDI work for their climate-aligned growth and adaptation,” it said.

Among other, it said that investment authorities can multiply their impact through peer learning and collaboration, for instance through creating regional synergies to grow climate FDI flows, especially where large-scale infrastructure or new product offtake is required.

“IPAs can exchange information on how best to track emerging standards around low-carbon production in sectors that are important for their economy and share this back with their domestic ecosystem,” the Forum said. “That may also involve creating a link between clean energy investment projects and industrial offtake sectors.”

Still another area where the coalition is poised to play a key role is helping to match climate commitments by multinational enterprises to concrete, climate-friendly, independently verified investment projects, thus providing pathways for climate commitments to be realised in practice.

“IPAs may equally find it useful to exchange notes on how best to track and monitor climate FDI, since doing so can help countries align their incentives and flanking strategies to make the most of new investments,” it explained.

The World Economic Forum said that in order to advance these efforts and leverage individual IPA actions at the collective level through a force multiplier, a Climate FDI Coalition is to be created with the undersigned as its founding members:

Sheikh Ali Alwaleed Al-Thani, Chief Executive Officer, Investment Promotion Agency of Qatar (Invest Qatar)

Antti Aumo, Executive Director, Invest in Finland

João Paulo Braga, Chief Executive Officer InvestMinas (Brazil)

Carmen Caballero, President, ProColombia

Russell D. Curtis, Chief Executive Officer, Invest Durban (South Africa)

A. Burak Dağlıoğlu, President, Investment Office of the Presidency of Türkiye

Ismail Ersahin, Chief Executive Officer, World Association of Investment Promotion Agencies (WAIPA)

Francis Gatare, Chief Executive Officer, Rwanda Development Board (RDB)

Yofi Grant, Chief Executive Officer, Ghana Investment Promotion Centre (GIPC)

Achim Hartig, Managing Director, Germany Trade and Invest (GTAI)

Wrenelle Stander, Chief Executive Officer, Wesgro (South Africa)

Marios Tannousis, Chief Executive Officer, Invest Cyprus

Nangula Nelulu Uaandja, Chief Executive Officer, Namibia Investment Promotion and Development Board (NIPDB)

Simone Wyss Fedele, Chief Executive Officer, Switzerland Global Enterprise (S-GE)

Tae Hyung Kim, Commissioner, Invest Korea

Nivruti Rai, Managing Director and Chief Executive Officer, Invest India