British International Investment (BII), the UK’s development finance institution and impact investor, has committed $60 million to the Green Investment Partnership (GIP), managed by Pentagreen Capital, to support green and sustainable infrastructure projects in South-East Asia. The region faces an estimated annual requirement of $210 billion for climate-resilient infrastructure, a need that public finance alone cannot meet. To help close this funding gap, the Financing Asia’s Transition Partnership (FAST-P), launched by the Monetary Authority of Singapore (MAS) in 2023, created GIP to finance and de-risk climate projects in the region.
GIP operates as an innovative blended finance vehicle under FAST-P, securing $510 million in committed capital from global and regional private, public, and philanthropic institutions. It focuses on sectors critical to decarbonization and sustainable growth, including renewable energy, distributed generation, e-mobility, circular economy, and emerging climate solutions. Investments will begin this year with a bio-energy programme through BECIS Bioenergy, converting agricultural waste and other sustainably sourced feedstock into renewable steam, reducing over 100,000 tonnes of emissions annually. Additionally, a renewables portfolio with ib vogt will support utility-scale solar and battery storage projects, cutting an estimated 257,000 tonnes of emissions each year.
BII’s $60 million commitment, including $10 million from its £100 million mobilisation facility announced by the UK Prime Minister at the UN General Assembly in 2024, played a critical role in achieving the fund’s first close. The investment has helped de-risk the fund’s capital structure and attract further commercial investment. Leslie Maasdorp, CEO of BII, emphasized that the partnership demonstrates the power of blended finance in unlocking opportunities that might otherwise remain out of reach, accelerating the low-carbon transition in South-East Asia, and promoting innovative technologies and business models.
Nik Mehta, British High Commissioner to Singapore, highlighted that the UK’s support for GIP underscores its commitment to mobilizing private capital for climate action at scale in developing countries across South-East Asia. The initiative is expected to unlock significant private investment for clean energy and sustainable infrastructure projects, fostering economic growth and job creation in the region. This investment reflects BII’s broader commitment to providing and mobilizing climate finance at scale, leveraging commercial capital to deliver meaningful impact for a sustainable future.
