British International Investment Launches £1.1 Billion Climate Fund for Asia’s Energy Transition

British International Investment (BII), the UK’s development finance institution and impact investor, has launched a £1.1 billion climate fund aimed at supporting the energy transition in Asia’s emerging markets. The announcement was made on Wednesday, April 22, 2026, as part of BII’s ongoing efforts to mobilise private capital into climate finance in regions most vulnerable to the impacts of the climate emergency.

The new platform, known as British Climate Partners, will work 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 potentially offer higher returns to attract commercial investment.

The initiative will focus on investments that support emissions reduction in fast-growing countries with coal-based energy networks and rising demand for clean energy. Target countries include India, the Philippines, Indonesia, Vietnam, Thailand, Malaysia, and other South-East Asian economies.

In the next five years, BII expects that at least 40 per cent of its new investments, including those made through the British Climate Partners fund, will qualify as climate finance. This represents an increase from the previous target of 30 per cent over the prior five-year period.

Srini Nagarajan, managing director and head of Asia at BII, emphasized that Asia’s energy transition will depend on mobilising private capital at scale. The fund forms part of BII’s broader strategy to deepen its climate-finance push in the region through platform-building, patient capital, and early-stage risk-taking.

The launch aligns with the UK-Singapore Strategic Partnership, under which the UK’s funding—delivered through BII—will deploy investment capital and provide blended finance to support low-carbon energy projects and innovative business models in Southeast Asia. This effort aims to bolster energy security and climate resilience across the region.

As the UK’s development finance institution, BII continues to play a pivotal role in directing capital toward sustainable development, particularly in markets where climate transition financing remains underfunded. The British Climate Partners initiative underscores the institution’s commitment to leveraging public finance to unlock private investment in critical climate solutions.