British International Investment (BII), the UK’s development finance institution, has committed $95 million to support climate action and renewable energy initiatives across South-East Asia. The funding aims to accelerate the region’s energy transition by backing utility-scale renewable energy projects and other climate-related investments.
A significant portion of the investment, $70 million, will go toward the SUSI Asia Energy Transition Fund (SAETF) and a co-investment in Sustainable Asia Renewable Assets (SARA), a platform established to develop a 500 MW portfolio of greenfield renewable energy projects in the region. SARA, created in partnership with FMO and SUSI, will focus on key markets, including Vietnam, the Philippines, Thailand, and Cambodia.
The SAETF strategy has seen a substantial boost, with its fund size more than doubling from $120 million to $259 million, thanks to contributions from new and existing investors. These funds are exclusively allocated to sustainable energy infrastructure, addressing South-East Asia’s growing energy demand and the urgent need to reduce reliance on fossil fuels.
South-East Asia is projected to account for over 25% of global energy demand growth by 2035, according to the International Energy Agency. Since 2010, nearly 80% of this demand has been met by fossil fuels, making the region a critical focus for renewable energy investments.
SAETF’s portfolio currently includes projects in utility-scale renewable energy, distributed energy generation, and energy efficiency for commercial and industrial clients. These initiatives aim to transition the region away from fossil fuel dependency while supporting economic growth.
BII has also committed $25 million to the Navis Asia Credit Fund, managed by Navis Capital Partners. The fund, which raised $135 million in its first close, will focus on lending to mid-market corporates and projects across sectors that enable sustainable development. BII’s contribution is specifically earmarked for climate-related investments, such as renewable energy, supply chain decarbonisation, sustainable logistics, and green real estate.
“South-East Asia’s evolving clean energy sector presents immense opportunities for climate investments,” said Srini Nagarajan, Managing Director and Head of Asia at BII. “Development finance institutions like BII play a pivotal role in mobilising capital for regions where climate finance is critical. Collaborating with partners like FMO, SUSI, and Navis allows us to address these urgent needs effectively.”
British High Commissioner to Singapore, Nik Mehta, emphasised the significance of the investment, stating, “This $95 million commitment demonstrates the UK’s commitment to partnering with international stakeholders to deliver practical solutions for South-East Asia’s energy transition.”
Despite growing international support, South-East Asia faces several challenges in securing climate finance. The region’s credit market remains underserved, while fragmented funding mechanisms and complex application processes create delays in resource disbursement. BII’s investments aim to address these gaps by providing accessible and targeted funding for projects that directly support the region’s energy and climate goals.
This latest announcement is part of BII’s broader strategy to invest up to £500 million in climate finance across South-East Asia by 2026. Between 2022 and 2026, BII has pledged to dedicate 30% of its total new commitments to climate-related initiatives.
