Overview
- British International Investment announced a five-year strategy to mobilize about $20 billion for energy and climate projects in developing economies.
- The institution will commit up to £8 billion itself and expects roughly £1 of private capital for every public pound, a lift of up to 40% in private leverage versus its prior plan.
- As part of the rollout, BII created British Climate Partners, a $1.48 billion vehicle focused on cutting emissions in coal-dependent Asian markets including India, Indonesia, Vietnam, and the Philippines.
- BII said it will work with life insurers, pension funds, and asset managers and will use equity platforms and mezzanine finance, a higher-risk loan layer that can offer higher returns, to de-risk early projects.
- The initiative targets large funding gaps that BII estimates at $160 billion a year for India and $210 billion annually for Southeast Asia through 2030.