The Luxembourg government has signed agreements to strengthen cooperation on renewable energy with European partners during a summit in Hamburg that brought together leaders from nine countries bordering the North Sea. Prime Minister Luc Frieden reiterated Luxembourg's commitment to regional energy projects and focus on energy security. Energy Minister Lex Delles signed the Hamburg Declaration, intended to boost cross-border renewable wind energy initiatives, and agreed with Denmark to strengthen bilateral collaboration on renewable energy transfers up to 2030.

With public funding for the UN's Sustainable Development Goals on the decline and only 17% of targets on track, there is an increasing onus on private investment to step up. According to researchers at the Stockholm Environment Institute, however, structural barriers and risk aversion mean the private sector is unlikely to bridge the funding gap alone. Blended finance and strong public institutions are required to attract private capital, particularly in low-income regions. Separately, the World Economic Forum said that Asia requires major growth in blended and innovative finance to cover $2.5trn required each year to reach its Sustainable Development Goals.

Swedish banking group SEB expects the volume of green bond issuance in Europe to rebound this year, driven by the need for energy security and an increased focus on infrastructure investment. The EU Grid Package has set a target of increasing energy infrastructure investment by more than 40% and the integration of renewables and energy efficiency measures by 2029. The bank expects global issuance of $370bn (€316bn) in 2026, with sovereign, supranational, institution and agency issuers increasing their collective issuance of green bonds by 8% and corporate issuers by 7%.

The United Arab Emirates has established itself as a leading investor in African renewable energy, allocating $70bn of its $110bn in African investments since 2019 to green infrastructure, experts say. Emirati companies, together with other investors from the Gulf Cooperation Council, are spearheading major projects across the continent. Abu Dhabi has become a strategic centre for African energy ventures, drawing both developers of large-scale projects and distributed energy firms.

With nearly one-quarter of the world's population within its borders, South Asia remains heavily dependent on fossil fuels. An analysis by the UN Economic and Social Commission for Asia and the Pacific has found that while governments across the region have set ambitious renewable energy targets, progress has been slowed by fiscal constraints, policy uncertainty and financial struggles at utilities. Blended finance, which leverages public and private capital to mitigate investment risks, can help accelerate the transition. According to analysts, technical assistance and transparent policy frameworks are essential for attracting investment and ensuring sustainable growth.

A group of ten European countries has concluded a multilateral agreement that aims to mobilise €1trn in offshore wind investment. Belgium, Denmark, France, Germany, Iceland, Ireland, Luxembourg, the Netherlands, Norway and the UK have signed the Hamburg Declaration, under which they will aim to build 15GW of electricity generation capacity annually from 2031 to 2040. The countries will also take steps to de-risk offshore wind investment, improve interconnections between their offshore cross-border grids and share subsea infrastructure. Industry body WindEurope says the sector is committed to the mobilisation of €1bn in economic value in Europe, the creation of 91,000 additional jobs and a €9.5bn investment in the value chain, including port facilities and vessels.

Allianz Global Investors has completed an initial fundraising round for its Allianz Credit Emerging Markets strategy, raising $690m to support projects in line with the Paris Agreement and UN Sustainable Development Goals. The fund, which has set out to reach $1bn at the final close, uses a blended finance approach, with development banks providing junior capital to encourage private investment in higher-risk climate initiatives. Investments are expected to focus on clean energy, sustainable infrastructure and related sectors across Latin America, Africa and Asia Pacific. Initial institutional investors include Allianz and Swiss pension fund GastroSocial Pensionskasse.

The Global Green Growth Institute and the European Bank for Reconstruction and Development have signed a memorandum of understanding to strengthen cooperation on climate action and sustainable development in developing and emerging economies. The agreement will see the two align policy support, capacity building, technical assistance and investment activities in project development, with an initial emphasis on methane reduction, carbon markets and climate-smart agrifood systems.

Stella, a vehicle that manages investments for the Heinz Hermann Thiele Family Foundation and Julia Thiele-Schürhoff, has awarded a €200m private equity mandate to M&G's impact investment management business, responsAbility. The mandate is to invest in long-term growth opportunities involving companies in Africa, Asia and Latin America that are aligned with the UN Sustainable Development Goals.

Swiss impact investment firm Blue Earth Capital has completed the first close of its inaugural impact secondaries strategy, securing more than $100m from institutional investors including Proparco, Ursimone Wietlisbach Foundation and Stella. The fund targets both developed and emerging markets, with investments spanning sectors such as climate, healthcare and education. By providing liquidity and enhancing portfolio diversification, the initiative seeks to bring impact secondaries into the mainstream and attract new investors. BlueMark, which conducted an independent assessment, awarded the strategy its highest impact rating.

The European Bank for Reconstruction and Development says it plans to provide a cumulative €150bn in green financing by 2030. The development bank's board is reviewing a revised strategy that builds on its previous target of at least half its financing being directed towards sustainable goals between 2021 and 2025. The latest strategy will focus on clean energy, the industrial energy transition, climate-smart agriculture, decarbonisation of transport, sustainable urban infrastructure and the deepening of green capital markets.

The European Union is preparing to introduce minimum 'made in Europe' requirements for public procurement of key green technologies in a move aimed at strengthening domestic industry and reducing dependence on Chinese imports. According to a draft proposal from the European Commission, stricter sourcing rules would apply to batteries, solar and wind components as well as to electric vehicles. Under the plan, within a year, publicly procured battery systems would need to be assembled in the EU, with further localisation of components mandated after two years. The proposal also sets minimum quotas for EU-made low-carbon goods and imposes conditions on foreign investment in strategic sectors.

The EU's Sustainable Finance Disclosure Regulation has so far done little to shift investor allocations to sustainable funds, in part because its classifications are too complex, according to analysis of European mutual fund data by the Centre for Economic Policy Research. While surveys indicate that investors value sustainability, many report that definitions set out in the regulation are confusing and offer limited insight. The European Commission has proposed reforms to the classification framework in response to such concerns.