British International Investment (BII), the UK's development finance institution and impact investor, has committed $60 million to South-East Asia is estimated to require $210 billion annually for climate resilient infrastructure, an investment need that public finance alone cannot meet. To help close this funding gap, Financing Asia's Transition Partnership (FAST-P) launched by the Monetary Authority of Singapore (MAS) in 2023, created GIP to finance and de-risk climate projects in the region.
GIP is an innovative blended finance vehicle under FAST-P that has secured $510 million in committed capital from global and regional private, public and philanthropic institutions. It will fund projects in sectors critical to decarbonisation and sustainable growth including renewable energy, distributed generation, e-mobility, circular economy and emerging climate solutions. GIP begins investing this year, starting with a bio-energy programme through BECIS Bioenergy that converts agricultural waste and other sustainably sourced feedstock into renewable steam, reducing over 100,000 tonnes of emissions annually. Also, a renewables portfolio with ib vogt comprising utility-scale solar and battery storage projects, cutting an estimated 257,000 tonnes of emissions each year.
BII's $60 million commitment, including $10 million from its £100 million mobilisation facility announced by the UK Prime Minister at the UN General Assembly in 2024, has played a critical role in achieving the fund's first close. It has helped to de-risk the capital structure to attract further commercial capital.
Leslie Maasdorp, CEO, BII, said "We are proud to support GIP, which exemplifies the power of blended finance, bringing together development finance, public, and private capital to unlock opportunities that might otherwise remain out of reach. By supporting GIP, we are accelerating the low carbon transition in South-East Asia and also demonstrating the power of innovative technologies and new business models.
"BII's participation is designed to catalyse further commercial investment, sending a strong signal to the market and helping to scale climate action across the region."
Nik Mehta, British High Commissioner to Singapore, said: "The UK's commitment to the Green Investment Partnership demonstrates our determination to mobilise private capital for climate action at scale into developing countries in South-East Asia. This pioneering approach, co-investing alongside Singapore and other partners through FAST-P, will help unlock significant private investment for clean energy and sustainable infrastructure projects across the region, driving growth and jobs in the process."
This investment reflects BII's strong commitment to providing and mobilising climate finance at scale, unlocking commercial capital to deliver meaningful impact for a sustainable future.
