British International Investment Targets $1.6 Billion for SEA Climate Finance

SINGAPORE — Jakartaweekly.com. British International Investment (BII), the UK’s development finance institution and impact investor, plans to commit $1.6 billion to climate finance projects across Southeast Asia over the next five years, with a focus on helping regional economies transition towards cleaner energy.

The commitment coincides with the fifth anniversary of BII’s Asian headquarters in Singapore. The planned investment will support developing economies including Indonesia, Vietnam, the Philippines, Malaysia and Thailand, where fossil fuels remain an important source of electricity generation.

Approximately half of the $1.6 billion is expected to come from BII, with a similar amount mobilised from private investors.

A significant portion of the funding will be channelled through British Climate Partners (BCP), a climate finance initiative launched by BII earlier this year. The initiative focuses on investment opportunities in high-growth, carbon-intensive economies across Asia.

Renewable Energy and Climate Infrastructure

BII said its regional investment strategy will focus on sectors that can help reduce emissions and strengthen climate resilience. These include renewable energy generation, electricity transmission, electric vehicle infrastructure, waste management and water infrastructure.

The institution’s investments are expected to contribute an estimated 1.8 gigawatts (GW) of clean energy capacity and avoid nearly 1.7 million tonnes of carbon emissions.

Between 2023 and 2025, BII committed nearly $400 million in climate finance across Southeast Asia, in line with its ambitions for the period.

Its investments during those years included renewable energy company ib vogt, clean energy platform Skye Renewables, the Asian Development Bank, Vietnam-based lenders VPBank and HDBank, and Indonesian solar energy company Xurya.

BII also invested through funds and financing partnerships, including Pentagreen Capital’s Green Investment Partnership, Gresham House’s SUSI Asia Energy Transition Fund and 100×100 Impact Fund I.

According to BII, its infrastructure and climate portfolio in Southeast Asia has supported approximately 358 megawatts (MW) of operational or installed clean energy capacity. The portfolio has generated more than 556,000 megawatt-hours (MWh) of renewable electricity and reported approximately 368,000 tonnes of avoided carbon emissions.

The investments have also supported more than 2,000 direct, operational and temporary construction jobs.

Mobilising Private Capital for the Green Transition

UK Foreign Secretary Ed Miliband said climate change was a national security issue requiring action both domestically and internationally.

He said BII’s investments would help Southeast Asian countries develop cleaner and more resilient economies while mobilising private capital to support the UK’s climate and development objectives.

BII Chief Executive Officer Leslie Maasdorp said the institution’s regional focus was on financing climate projects that could support sustainable economic growth while reducing emissions and generating returns for the UK taxpayer.

“The global challenge of the climate emergency knows no borders,” Maasdorp said.

Srini Nagarajan, BII’s Managing Director and Head of Asia, said the institution planned to increase its climate finance commitments over the next five years to expand the pipeline of investment opportunities and accelerate the region’s green transition.

The $1.6 billion target represents BII’s planned climate finance commitment across Southeast Asia, with private investors expected to provide a substantial share of the capital. The funding is intended to support the region’s transition towards lower-carbon energy systems while addressing infrastructure needs in developing economies.