BII launches $1.5B new climate initiative for Asia

British International Investment (BII), the United Kingdom’s development finance institution and impact investor, has on Thursday launched $1.5 billion new climate initiative for Asia. The bank said in a statement that it would consolidate its role as a key climate investor in its markets with the launch of British Climate Partners (BCP). The initiative will focus on investments that will support emissions reduction in countries that have coal-based energy networks. These countries include India as well as the Philippines, Indonesia, Vietnam and other South-East Asian economies. According to the statement, Asian countries contributed three-quarters of global coal demand in 2024. India still needs at least $160 billion a year in investment to meet its net zero commitments, while countries in South-East Asia need a further $210 billion annually until 2030. Through BCP, BII will mobilise private capital alongside its own, working in partnership with private investors to deploy capital through a combination of equity platforms and mezzanine finance. This approach is designed to scale climate projects, reduce early‑stage risks and offer potential higher returns to attract commercial investors. “Asia’s energy transition will depend on mobilizing private capital at scale and British Climate Partners is designed to do exactly that, “Through this new initiative, we’ll use our experience, capital and partnerships to build platforms, de‑risk projects and crowd in long‑term investment into commercially viable climate opportunities across the region,” said Srini Nagarajan, Managing Director and Head of Asia, BII. BII said will continue to provide climate finance to its other markets. In the next five years, the bank expects that at least 40 percent of new investments, including BCP, will qualify as climate finance – up from the target of 30 percent in the last strategy period. In addition, BII said it will enhance its commitment to frontier markets – those identified by the UN as Least Developed Countries – with at least 25 percent of new investments by value going to these countries. It is noted that frontier markets are home to more than a billion people and have the greatest investment need yet remain underserved by private capital due to structural barriers to investment. Furthermore, BII will focus on a select number of frontier markets, including Sierra Leone, Zambia and Nepal, combining investment, policy engagement, technical assistance and partnerships to strengthen investment environments and capital markets. “Africa has been at the heart of BII’s work since our inception. That long track record has given us deep experience of investing through economic cycles and a clear understanding of what businesses need to grow in some of the continent’s most challenging markets,” said Chris Chijiutomi, Managing Director and Head of Africa, BII. “This strategy builds directly on that experience, “By sharpening our focus on frontier markets, investing in high-impact sectors and mobilizing domestic and international private capital, we are concentrating our efforts where our capital and expertise can make the greatest difference for African economies,” he added. In a further evolution of BII’s strategy, the company will also seek to make “market-level impact” investments. These are investments that go beyond a commitment to a single company, and help to develop a wider sector or market. BII will also increase its commitment to gender-lens investing in support of women. The company intends that 30 per cent of new core investments (not including BCP investments) will qualify under the 2X Challenge, compared to 25 percent in the last strategy period. BII achieves over $400M in green energy commitments across South-East Asia