British International Investment (BII) has announced a significant $60 million commitment to the Green Investment Partnership, aiming to close the climate finance funding gap in South-East Asia. This move marks a substantial effort by the UK’s development finance institution to accelerate the region’s transition to a low-carbon economy by mobilizing private capital and supporting sustainable infrastructure projects. The funding is part of BII’s strategic focus on climate finance, which now represents over a quarter of its total portfolio, signaling a robust push towards sustainable development and poverty reduction through climate action.
Growing Climate Finance Commitment by BII
Expansion of Climate Finance Investments
BII’s $60 million contribution is a critical addition to its already expanding portfolio dedicated to climate finance. In 2024 alone, BII invested £708 million (approximately $903 million) in climate-related projects, accounting for 41% of its total commitments. This represents a remarkable growth compared to the £80 million ($104 million) invested just four years earlier in 2020. The organization’s climate finance efforts have scaled rapidly as it works to meet rising global demands for sustainable investments.
Currently, climate finance assets make up more than 26% of BII’s total holdings, demonstrating a strategic shift towards sustainability-focused investment. Over the past three years, BII has invested upwards of $2 billion globally in initiatives aimed at mitigating climate change impacts, underscoring its role as a leading financier in climate resilience and green infrastructure.
Regional Focus on South-East Asia
South-East Asia is a focal point in BII’s climate strategy, with ambitions to channel up to £500 million in climate finance investments to the region. The $60 million injection into the Green Investment Partnership directly targets reducing the climate finance gap here—an essential step in supporting the rapid economic growth of these countries while keeping environmental sustainability in check.
Previously, BII committed $95 million to climate initiatives in South-East Asia, including $70 million towards the SUSI Asia Energy Transition Fund and $25 million to the Navis Asia Credit Fund. These investments facilitate renewable energy projects and green technologies crucial to the region’s energy transition.
Strategic Importance of the Green Investment Partnership
The Green Investment Partnership acts as a pivotal vehicle for blending public and private capital to finance large-scale green projects across emerging markets. It has already secured a first close figure of $510 million from global investors eager to back sustainable infrastructure development. BII’s investment boosts the partnership’s capacity to support initiatives such as renewable energy installations, energy-efficient utilities, and climate-resilient infrastructure.
Supporting Economic and Climate Goals
Leslie Maasdorp, CEO of BII, emphasized the critical role climate finance plays in both reducing poverty and creating economic opportunities through sustainable growth. “We can’t reduce poverty or dependency unless we support partners to meet the challenge of a rapidly changing climate and seize economic opportunities from the green transition,” Maasdorp stated, highlighting the dual benefits of climate investments.
Nik Mehta, British High Commissioner to Singapore, reflected on the significance of the recent climate finance commitment to South-East Asia: “This is a prime example of how the UK partners internationally to drive sustainable investments across the region, channeling global capital where it’s most needed to support the energy transition.”
Broader Impact of BII’s Climate Investments
Beyond South-East Asia, BII’s climate commitments support diverse projects worldwide. The institution funds solar power developments in Sierra Leone and solar irrigation projects in Kenya, which showcase BII’s global reach and comprehensive approach to climate finance. These investments align with international sustainable development goals, aiming to boost clean energy access and climate resilience in developing economies.
Enhancing Green Trade Finance and Supply Chains
BII also recognizes the importance of green trade finance in strengthening renewable energy supply chains. Srini Nagarajan, Managing Director and Head of Asia at BII, noted that green trade finance initiatives are vital for building climate resilience by supporting the flow of financing needed to grow sustainable energy infrastructure across Asia-Pacific.
British International Investment’s $60 million commitment to the Green Investment Partnership underscores its expanding leadership role in global climate finance, particularly in the crucial South-East Asian region. With climate finance now forming a substantial portion of BII’s investment portfolio, and with over $2 billion invested globally in recent years, the institution is actively closing the funding gaps that hinder the region’s sustainable development. This investment not only advances the green energy transition but also aligns economic growth with climate resilience, underscoring BII’s mission to reduce poverty through sustainable development.
The partnership between BII and international investors exemplifies how blending developmental aid with private capital can mobilize the vast resources needed to tackle climate change and support emerging economies. Such financial commitments will be essential for meeting regional and global climate goals in the coming decades.
