High-Level Friends Group (HLFG)

High-Level Friends Group Private Climate Finance for Development (HLFG)

Emerging markets and developing economies (EMDEs) face a considerable investment gap in achieving the mitigation and adaptation goals of the Paris Agreement. Closing this gap will require increasing the quantity and effectiveness of international and domestic, public and private flows. To accomplish this, EMDEs and advanced economies must make coordinated improvements to their financial and institutional environments. Advanced economies could provide bilateral contributions to foster trust, help meet urgent needs and tap into other financing sources.

The High-Level Friends Group Private Climate Finance for Development (HLFG) was launched by the German Federal Ministry for Economic Cooperation and Development (BMZ) in May 2023 to provide a platform for engagement and dialogue on mobilizing public and private capital for climate action in EMDEs. The HLFG comprises diverse international stakeholders including representatives from ministries in the Global South and Global North, international organisations, private financial institutions, think tanks, academia, and development banks, brought together to advance dialogue to drive meaningful and catalytic change. The group aims to create a platform to share insights from other similar initiatives, given its unique focus on mobilizing private capital and DRM.

Climate Policy Initiative (CPI) and Brookings Institution serve as the secretariat for the HLFG.

Domestic resource mobilisation

HLFG works to overcome challenges faced by EMDEs in mobilising domestic capital for climate mitigation and adaptation. Domestic resource mobilization (DRM) underpins an effective climate finance architecture.

Carbon markets

The Peer Exchange on Carbon Markets provides a trusted, confidential setting for technical exchange among EMDEs, complemented by targeted expert inputs, to strengthen domestic carbon market policies and instruments. The convening group comprises of the German Ministry for Economic Cooperation and Development (BMZ), Glasgow Financial Alliance for Net Zero (GFANZ), International Chamber of Commerce (ICC), Observer Research Foundation (ORF) and Climate Policy Initiative (CPI). Participating countries jointly capture lessons learned and can choose to distil them into practical, actionable insights.

EMDEs must increase domestic climate and nature related investments

The Independent High Level Expert Group on Climate Finance (IHLEG) has assessed that EMDEs must increase domestic climate and nature related investments more than four-fold to $2.4 trillion per year 2030 and more than six-fold to $3.2 trillion a year by 2035 to meet Paris agreement targets and maintain progress towards the sustainable development goals. Domestic resources can reasonably finance $1.4 trillion per year of the total investment by 2030 and $1.9 trillion of the total investment need by 2035.

Beyond scale alone, DRM is necessary to meet the full spectrum of investment priorities and anchor external sources of finance. Effective public domestic resource mobilization is critical for expanding fiscal capacity, to signal creditworthiness and maintain the sustainability of external borrowing. Equally important is private domestic resource mobilization, necessary to attract external private finance at scale as it signals depth, stability and functioning of domestic financial markets. Public development banks are well-placed to support these efforts because of their role in mobilising local savings and incentivizing investments for sustainable projects.

Theme 2: Carbon Markets

The Peer Exchange on Carbon Markets comprises two components: a convening group, comprising BMZ, GFANZ, ICC, ORF and CPI, and a group of invited EMDEs from different regions. The latter is represented by one or two permanent technical focal points from designated national authorities or ministries responsible for carbon market policy design or implementation. Members of the convening group will facilitate meetings, complemented by additional experts as needed. Based on the group’s preferences, learnings may be presented to outside stakeholders at e.g. high-level events like the Hamburg Sustainability Conference 2026, contributing to international carbon market discussions.

EMDEs participating in the Peer Exchange on Carbon Markets are Indonesia, Côte d’Ivoire, Egypt, Ethiopia, and South Africa, with scope for additional invited countries to join over time.

Membership

Government representatives

Niels Annen, State Secretary, Federal Ministry for Economic Cooperation and Development, Germany
Pepukaye Bardouille, Director of Bridgetown Initiative and Special Adviser on Climate Resilience, Barbados Prime Minister’s Office
Vukile Davidson, Chief Director, Financial Markets and Stability, South Africa Treasury
Rachel Kyte, UK Special Representative for Climate, UK Foreign, Commonwealth & Development Office
Sam Mugume, Assistant Commissioner in the Macroeconomic Policy Department, Ministry of Finance, Uganda
Patricia Peña, Associate Assistant Deputy Minister, International Assistance Partnerships and Programming, Global Affairs Canada
Thomas Revial, Assistant Secretary, Multilateral Affairs, Trade and Development Policies, French Treasury
Ana Toni, CEO COP 30 and National Secretary for Climate Change, Ministry of Environment and Climate Change, Brazil

Multilateral, bilateral and international organizations

Mafalda Duarte, Executive Director, Green Climate Fund (GCF)
Jamie Fergusson, Director for Climate, World Bank Group
María del Pilar Garrido Gonzalo, Director for Development Co-operation, The Organisation for Economic Co-operation and Development (OECD)
Selwin Charles Hart, Special Adviser to the Secretary-General on Climate Action and Just Transition, United Nations (UN)
Alexander De Croo, Administrator, United Nations Development Programme (UNDP)
Avinash Persaud, Special Advisor on Climate Change to the President of the Inter-American Development Bank (IDB)
Roland Siller, CEO, Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG)
Vera Songwe, Chair of the Board, Liquidity and Sustainability Facility (LSF)

Private sector

John W.H. Denton, Secretary General, International Chamber of Commerce (ICC)
Christopher Marks, Managing Director, Mitsubishi UFJ Financial Group Bank (MUFG)
Mary L. Schapiro, Vice Chair, Glasgow Financial Alliance for Net Zero (GFANZ)
Günther Thallinger, Member of the Board of Management of Allianz SE, Investment Management, Sustainability

Think tanks, academic and research institutions

Amar Bhattacharya, Senior Fellow, Global Economy and Development, Center for Sustainable Development, Brookings Institution
Barbara Buchner, CEO, Climate Policy Initiative (CPI)
Lars-Hendrik Röller, Chairman at Berlin Global Dialogue and Professor of Economics at European School of Management and Technology (ESMT)
Samir Saran, President, Observer Research Foundation (ORF)
Nicholas Stern, Professor and Chair of the Centre for Climate Change Economics and Policy, London School of Economics (LSE)
Ulrich Volz, Professor of Economics and Director of the Centre for Sustainable Finance at SOAS, University of London

Events

Relevant resources

Publications

Related initiatives

Green Guarantees Group (GGG)

The GGG brings together governments, multilateral development banks (MDBs), the private sector, civil society, and a Wise Persons Group to chart a path toward greater uptake of guarantees. The GGG, supported by the German Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety (BMUKN) and the Nigerian government, provides political leadership, strategic vision, and a high-level convening as well as expert exchange function. The European Climate Foundation (ECF) and the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) serve as the GGG’s Secretariat. CPI is the technical partner.

Go the GGG page