BII unveils £1.1 billion climate platform for Asia

British International Investment (BII), the United Kingdom’s development finance institution and impact investor, has released a new five-year strategy centred on mobilising private capital for the energy transition. A key element is British Climate Partners, a £1.1 billion platform designed to attract large-scale private investment into climate projects across developing Asian economies and support progress toward net zero.

Under the plan, BII will expand its role in Asia’s clean energy transition by combining its own capital with private funding. British Climate Partners will operate alongside private investors, using equity platforms and mezzanine finance to direct funds into climate-focused projects. The approach aims to scale project pipelines, address early-stage risks, and improve return profiles to encourage broader commercial participation.

The initiative will focus on high-growth markets where coal continues to dominate and demand for clean energy is increasing. Target countries include India, the Philippines, Indonesia, Vietnam, Thailand, Malaysia, and other South-East Asian economies.

Beyond Asia, BII will continue climate financing in its existing regions. Over the next five years, the organisation expects at least 40 per cent of its new commitments, including those under British Climate Partners, to qualify as climate finance. This marks an increase from the 30 per cent target set in the previous strategy cycle.

Asian economies accounted for nearly three-quarters of global coal consumption in 2024, highlighting the region’s central role in energy transition efforts. The funding gap remains significant. South-East Asia requires an estimated US$210 billion annually, while India needs at least US$160 billion each year through 2030 to support the shift away from coal.

Development Minister Jenny Chapman said the strategy reflects a broader shift in the United Kingdom’s development approach, moving from traditional aid to long-term partnerships that combine investment, expertise, and financial system reform. She stated that BII will play a central role in implementing this model by supporting business growth, job creation, and policy development aligned with partner countries’ priorities.

Srini Nagarajan, Managing Director and Head of Asia at BII, said the region’s transition depends on mobilising private capital at scale. He noted that British Climate Partners will build on BII’s experience, capital base, and partnerships to create investment platforms, reduce project risks, and channel sustained funding into commercially viable climate opportunities across Asia.

The featured photograph is for representation only.