Bloomberg Philanthropies deepens commitment to clean energy transition

Yesterday on the opening day of COP27, Michael R. Bloomberg announced Bloomberg Philanthropies expanded approach to help move the world beyond coal. Earlier in the year, the charitable organization had committed $242 million to Africa's clean energy transition at the Sustainable Energy for All Forum in Kigali. To help accelerate its plan to turbocharge the clean energy transition, the organization intends to collaborate with national and local governments to advance planning, shape policy, and increase capacity. In addition, it is collaborating with the Glasgow Financial Alliance for Net Zero (GFANZ) to mobilize capital for energy transitions in emerging markets and underdeveloped nations.

Between 2011 and 2020, renewable energy investments in Africa totalled $48 billion, only 24% of total investments in the period. However, the IMF announced that emerging markets and developing countries will require $1 trillion in annual clean energy investment by 2030 to keep the planet on a net zero pathway. Therefore, more financing is needed, and as private financing represents, on average, 80% of funding, more private funding is required. With over 550 financial institutions from 50 countries committing to net zero through the net-zero alliances comprising GFANZ, finance on a scale is now possible. Through Bloomberg Philanthropies' partnership with GFNAZ, they plan to work with financial institutions to strengthen investment opportunities and leverage carbon credits as an alternative source of revenue for projects.

The strategies are expected to reduce political, technical, and financial barriers to the energy transition and help Michael R. Bloomberg realize his longstanding mission to move the world beyond coal.