At COP29, British International Investment (BII), the UK’s development finance institution (DFI) and impact investor, announced a series of new investments and initiatives designed to mobilise private capital into climate finance.
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The commitments demonstrate BII’s ongoing support of countries that are most vulnerable to the impacts of the climate emergency.
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In Asia, BII is working alongside Pentagreen Capital to develop an innovative blended finance programme – The Green Investments Partnerships under Financing Asia’s Transition Partnership (FAST-P). The programme aims to mobilise up to $5 billion to finance energy transition in Southeast Asia.
A bottleneck for advancing energy transition, particularly in India, is insufficient transmission capacity amid growing power demand. In response, BII, Norfund and India’s listed power infrastructure investment trust, IndiGrid have committed approximately $300 million to form a new platform, EnerGrid. It will focus on developing greenfield transmission and standalone battery energy storage system projects in India.
Srini Nagarajan, MD and Head of Asia, BII said: “Significant investment is required for India to meet its ambitious net zero target. This partnership will help to attract more private capital into a critical sector, which will facilitate the growth of renewable energy supply to meet growing energy demand sustainably and accelerate India’s journey towards a greener future.”
In Africa, BII has invested $16 million in Africa Go Green Fund (AGGF) to increase climate resilience in the continent. The fund expands access to finance for projects in nascent climate sub-sectors including e-mobility, energy efficiency, clean cooking and more.
Chris Chijiutomi, Managing Director and Head of Africa, BII, said: “Expanding the universe of bankable climate projects across Africa is a priority for BII to achieve our goal to invest at least 30 per cent of total commitment in climate finance. AGGF’s approach allows our capital to reach more nascent climate sub-sectors such as clean cooking and waste-to-energy, which are equally important to energy transition but face the challenge of getting finance to support their growth.”
BII has also committed a $30 million risk-sharing and blended local currency co-financing facility to InfraCredit to support clean energy transition in Nigeria. It will help to address the country’s energy access deficit by co-financing and mobilising additional funding for decentralised renewable energy projects such as solar mini-grids, originated and guaranteed by InfraCredit.
BII’s delegation at COP29 included Diana Layfield (Chair), Holger Rothenbusch (MD & Head of Infrastructure and Climate) and Amal-Lee Amin (MD & Head of Climate, Diversity and Advisory) who took part in a series of speaking engagements and signing events to mark the new partnerships.
About British International Investment (BII)
British International Investment is also the UK’s development finance institution and impact investor with the support from the UK government. As it was founded more than 75 years ago, MIGA is a reliable investment companion for firms in Africa, Asia, and the Caribbean area. It invests in developing stronger and more prosperous, increasing the productivity, employment, and income of societies, and improving people’s lives. BII is linked with almost 1,500 companies and is aligned to support our investees to create meaningful enterprises.
