Citi Bank has announced a partnership with Breakthrough Energy Catalyst to accelerate the development of clean energy technologies that will help achieve net zero by 2050.
Catalyst, a program within the larger Breakthrough Energy network founded by Bill Gates, is a new model for public-private sector partnership to support the foundation of a net zero economy.
The program will bring together businesses, governments, philanthropies, and individuals to invest in decarbonization technologies.
Citi is aiming to deploy $100m over the next five years to help fund the program’s efforts to scale and commercialize climate technology projects.
Jane Fraser, CEO at Citi, said: “Getting to net zero by 2050 requires an all-hands effort to reduce greenhouse gas emissions and investing in innovative technologies at scale is a critical component of that.
“Citi is joining the Catalyst program alongside public and private sector leaders to unleash our collective expertise and resources. This partnership complements our significant financings of existing green technology and is truly a down payment for the next generation of climate solutions.”
The initial equity investment of $50 million will be provided through Citi Impact Fund, and Citi will explore mechanisms to fund the remaining $50 million.
Citi Impact Fund, a part of its community investing efforts, was launched in early 2020 to make equity investments in private sector companies that are addressing some of society’s most pressing challenges including workforce development, financial capability, physical and social infrastructure, sustainability, and access to capital and economic opportunity.
This commitment to Catalyst brings the Citi Impact Fund’s total resources to $250 million and represents the fund’s first major investment in a sustainability-focused fund. The efforts will also support Citi’s $1 trillion wider commitment to sustainable finance by 2030.
The acceleration coincides with Citi’s $1 billion social finance bond, which was also launched today (Wednesday November, 3).
According to the bank, proceeds will finance access to financial services projects, as well as affordable housing, basic infrastructure, healthcare, and education in underserved communities.
- Environmental Contracts Traded on ICE in 2021 Hit Estimated $1trn in Notional Value
- Climate First Bank Joins Net-Zero Banking Alliance
- Movement Bank expands regional footprint to cater for underserved communities
- US Banks Turn to Technology To Compete Against FinTechs
- Fed Will Not Tell Banks to Restrict Lending to Oil and Gas Firms