BII to Mobilize $1.6 Billion for Climate Finance in Southeast Asia

UK development finance institution British International Investment (BII) announced plans to channel $1.6 billion in climate finance investments in Southeast Asia over the next five years, aimed at supporting the region’s transition from fossil fuels to renewable energy and strengthening climate resilience.

According to BII, approximately half of the $1.6 billion will be provided by the organization, with the remaining capital expected to be mobilized from private investors.

The investments will target sectors including renewable energy generation, electricity transmission, electric vehicle infrastructure, waste management and water infrastructure. According to BII, the planned investments are expected to add an estimated 1.8 GW of clean energy capacity and avoid nearly 1.7 million tonnes of carbon emissions.

The new commitment follows nearly $400 million in climate finance investments made by BII in Southeast Asia between 2023 and 2025, including investments in ib vogt, Skye Renewables, the Asian Development Bank, VPBank, HDBank and Xurya, as well as funds including Pentagreen Capital’s Green Investment Partnership, Gresham House’s SUSI Asia Energy Transition Fund and 100×100 Impact Fund I.

BII said that its infrastructure and climate portfolio in Southeast Asia has supported approximately 358 MW of operational or installed clean energy capacity, generated more than 556,000 MWh of renewable electricity and avoided approximately 368,000 tonnes of carbon emissions, while supporting more than 2,000 jobs, including operational and temporary construction roles.

BII said that a significant proportion of the new financing will be channeled through British Climate Partners (BCP), a climate finance initiative launched earlier this year by BII, aimed at mobilizing investment in high-growth, carbon-intensive economies across Asia.

Leslie Maasdorp, Chief Executive Officer of BII, said:

“Our singular focus for the South-East Asia region is to fund climate finance projects that will contribute to the region’s clean and sustainable economic future. The global challenge of the climate emergency knows no borders. That’s why we are committed to powering economic growth in the region, while driving emissions down and delivering a return for the UK taxpayer.”