British International Investment (BII), the UK’s development finance institution and impact investor, has announced a new five-year strategy aimed at strengthening its role in global development and climate finance. A key part of this strategy is the launch of British Climate Partners (BCP), a £1.1 billion initiative designed to mobilise large-scale private investment to support the energy transition in developing Asian economies and accelerate progress toward net zero emissions.

The focus on Asia reflects the region’s central role in the global energy transition. In 2024, Asian countries accounted for nearly three-quarters of global coal demand, highlighting both the scale of the challenge and the opportunity for change. Transitioning away from coal will require massive financial resources. Estimates suggest that South-East Asia alone needs around US$210 billion annually, while India requires at least US$160 billion each year through 2030 to meet its energy transition goals.

Through British Climate Partners, BII plans to increase its climate finance efforts by working closely with private investors. The initiative will combine BII’s own capital with external funding, using tools such as equity platforms and mezzanine finance to support climate-related projects. This approach is intended to reduce risks in the early stages of projects while also making them more attractive to commercial investors by offering the potential for stronger returns. By doing so, BII aims to unlock more private capital and accelerate the development of sustainable energy solutions.

BCP will prioritise investments in fast-growing economies where energy demand is rising and coal still plays a major role. These include countries such as India, Philippines, Indonesia, Vietnam, Thailand and Malaysia, along with other South-East Asian nations. These markets are seen as critical to reducing global emissions while meeting growing energy needs with cleaner alternatives.

Alongside this new initiative, BII will continue to invest in other regions as well. Over the next five years, the organisation expects that at least 40 per cent of its new investments will qualify as climate finance, an increase from its previous target of 30 per cent. This reflects a stronger commitment to addressing climate change through investment-led development.

The UK government has also emphasised the importance of this strategy. Jenny Chapman, Minister for Development, described it as part of a broader shift in the UK’s approach—from traditional aid grants to long-term partnerships that combine investment, expertise, and policy support. She highlighted that BII plays a central role in delivering this vision by helping businesses grow, creating jobs, and supporting partner countries in shaping their own development paths.

From a regional perspective, Srini Nagarajan, Managing Director and Head of Asia at BII, stressed that mobilising private capital at scale will be essential for Asia’s energy transition. He explained that BCP is designed to use BII’s experience, financial strength, and partnerships to build investment platforms, reduce project risks, and attract long-term funding into commercially viable climate opportunities.

BII also reaffirmed its commitment to supporting frontier and least developed markets. Over the next five years, at least 25 per cent of its new investments will be directed toward countries classified as Least Developed Countries by the United Nations, including Nepal. These regions often face the greatest development challenges and have limited access to private capital, making targeted investment particularly important.In addition, BII plans to expand its approach by focusing on “market-level impact” investments. Rather than supporting individual companies alone, this strategy aims to strengthen entire sectors or markets, creating broader and more sustainable economic impact.

The organisation is also increasing its focus on gender equality through investment. It aims for 30 per cent of its new investments—excluding those under BCP—to meet the criteria of the 2X Challenge, a global initiative that promotes women’s economic empowerment. Overall, BII’s new strategy and the launch of British Climate Partners signal a stronger push toward combining public and private finance to tackle climate challenges, drive economic growth, and support sustainable development across Asia and beyond.