22/11/2021
LTIIA supports Institutional investors’ announcement of Net Zero Model Investment Law to foster sustainable investment in Emerging markets

There is today a general consensus among Governments and global development finance institutions alike recognizing there is no way to achieve the SDG’s and Paris Agreement infrastructure and address the energy multi trillion-dollar financing gap, without a huge increase in the scale and speed of global institutional investor allocations to infrastructure .

Championed as a global public good by the CFA Asset Owners Council (AoC) in New York, and its dedicated brain trust, the ML-IIPP framework can assist emerging and developing countries to de-risk and meet their Net Zero capital mobilisation goals. It plans to do so by introducing and enable the use of a newly designed infrastructure investment procurement regulation and framework between governments and global institutional investors for green and Net Zero infrastructure investment programmes and projects , both domestically and across borders .

LTIIA has endorsed this initiative, as we believe the private sector has to play more of a role in economic development if emerging markets and developing economies are to contribute to the SDGs and Paris-climate agenda. Many institutional investors, though wary of the risks involved, are keen to diversify their portfolios and find new opportunities for investing in emerging markets. This is where the ML-IIPP’s initiative can move the needle and help deploy private capital at scale and speed, by fostering collaboration between investors and the public sector. It can facilitate private sector investment into infrastructure projects in line with best practice. LTIIA therefore welcomes this new tool as an opportunity to better match supply and demand for institutional investors.