The UK’s development finance institution and impact investor, British International Investment, plans to mobilize about $20 billion in new capital into developing countries to help them with energy supply and boost climate initiatives.
The new five-year strategy of the British International Investment (BII) is focused on accelerating the flow of private capital to developing countries, the UK development finance institution said on Thursday.
Of the £15 billion, or $20 billion, of capital, BII will contribute up to $10.8 billion (£8 billion), with the balance coming from private institutions.
For every £1 of public money, BII expects to crowd-in around another £1 of private capital, which would be a rise of up to 40% compared to its previous five-year strategy.
BII will work alongside life insurers, pension funds, and other asset managers to make investments that deliver positive economic, environmental, and social outcomes as well as risk-adjusted financial returns, the finance institution said.
Set OilPrice.com as a preferred source in Google .
BII also announced that it would consolidate its role as a key climate investor in its markets with the launch of British Climate Partners (BCP). The $1.48 billion (£1.1 billion) initiative will focus on investments that will support emissions reduction in Asian countries that have coal-based energy networks. These countries include India as well as the Philippines, Indonesia, Vietnam, and other Southeast Asian economies.
Asian countries have contributed three-quarters of global coal demand in recent years.
India still needs at least $160 billion a year in investment to meet its net zero commitments, while Southeast Asia’s economies need a further $210 billion annually until 2030, according to BII.
“Asia’s energy transition will depend on mobilising private capital at scale and British Climate Partners is designed to do exactly that,” said Srini Nagarajan, MD and Head of Asia, BII.
“Through this new initiative, we’ll use our experience, capital and partnerships to build platforms, de?risk projects and crowd in long?term investment into commercially viable climate opportunities across the region.”
By Michael Kern for Oilprice.com
More Top Reads From Oilprice.com
- Qatar’s $20 Billion LNG Blackout Forces Pakistan Back to the Spot Market
- Russian Oil Resumes Flowing to Slovakia via Druzhba After Three-Month Halt
- Europe’s Rooftop Solar Orders Triple As Gas Prices Surge
