UK International Investment Corporation launched a new climate initiative in London on Thursday aimed at accelerating the energy transition, with India among the key economies.
The UK’s development finance institution and impact investor said its new UK Climate Partnership program, worth £1.1 billion, aims to mobilize private capital at scale to support developing economies in Asia as they accelerate their journey to net-zero emissions.
Net zero is the balance between the greenhouse gases emitted and removed from the atmosphere by any given entity (such as a country or organization).
India has been regularly raising its ambitions to reduce greenhouse gas emissions, announcing targets for 2031-35 in March 2026 following a 2022 update, marking a major step towards its goal of net-zero emissions by 2070.
The BCP will focus on investments that support emissions reductions in fast-growing countries with coal-based energy grids and growing demand for clean energy, including India, the Philippines, Indonesia, Vietnam, Thailand, Malaysia and other Southeast Asian economies.
UK Development Secretary Jenny Chapman said: “Over the past few months I have been setting out the need for the UK to take a new approach to development, moving away from traditional aid grants towards long-term partnerships that combine investment, expertise and international financial reform.”
“It also means responsible investing: bringing everything the UK has to offer – from our work through international organizations and our investment vehicles, to research, practical advice and diplomacy. Taken together, this can help businesses grow, create jobs and support the reforms and policies our partners choose for themselves.
She said: “Belg is at the heart of this approach and its new strategy is moving in the direction we have set as a government. I know B&D will play a leading role over the next five years in turning our shared goals into real results.”
As part of a new five-year strategy unveiled this week, the BII claimed that Asian countries will account for about three-quarters of global coal demand by 2024 and are therefore at the center of the global energy transition challenge. It cited well-documented research highlighting the huge investments needed to transition the region away from coal, with India expected to need $160 billion per year and Southeast Asia about $210 billion per year by 2030.
Srini Nagarajan, Managing Director and Head of Asia at BII, said: “Asia’s energy transition will depend on the massive mobilization of private capital, and UK Climate Partners is designed for this. With this new initiative, we will use our experience, capital and partnerships to build platforms, de-risk projects and inject long-term investment into commercially viable climate opportunities across the region.”
The United Nations Development Program says the sustainable energy transition is a change in the way energy is produced, distributed and consumed, aiming to move away from fossil fuels and toward systems centered on renewable energy sources such as solar, wind, hydropower and geothermal energy.
Through the BCP, BII said it will work with private investors to deploy capital through a combination of equity platforms and “mezzanine financing” to scale climate projects, reduce early-stage risks and provide potentially higher returns to attract commercial investors.
BII expects that at least 40% of new investments, including BCPs, will be eligible for climate finance over the next five years, up from the 30% target during the previous strategy period.
During this period, at least 25% of BII’s new investments will be directed to least developed countries as defined by the United Nations as countries where private capital remains scarce but where development needs are greatest.
In a further development of its approach, BII said it would also look to make “market-level impact” investments that go beyond commitments to single companies and help develop wider industries or markets. It also plans to increase its commitment to gender-based investment to support women-led projects.
This article was generated from automated news agency feeds without modifications to the text.
