British International Investment (BII), the United Kingdom’s development finance institution (DFI), announced Tuesday it has committed £308 million ($400 million) in climate finance across South-East Asia during its current strategy period, advancing its ambition to invest up to £500 million ($666 million) by 2026.
BII said in a statement that its investments are expected to deliver over 1.8 GW of clean energy capacity and avoid more than 1.6 million tons of greenhouse gas emissions, supporting the region’s green transition.
It is noted that South-East Asia is among one of the most climate-vulnerable regions globally, facing rising sea levels, extreme weather events, and significant threats to food and water security.
The region is also heavily dependent on fossil fuels, with coal and natural gas still dominating its energy mix.
To address these challenges, governments across the region have set ambitious decarbonization targets including net-zero commitments by 2050, reflecting a strong policy push toward clean energy.
However, the region needs an estimated $210 billion annually for green infrastructure to meet its climate goals. This is a gap that cannot be filled by public funding alone.
As a committed partner to the region, BII said it is stepping in not only with capital but with a patient and flexible approach to de-risk projects, demonstrate their commercial viability, and encourage market participation.
“Our commitment in South-East Asia reflects our ambition to deliver climate finance where it matters most, supporting countries that are highly vulnerable to climate change and driving the transition to clean energy,” BII’s Chief Executive Officer Leslie Maasdorp said during his first visit to the region since joining the organization.
“By taking a patient and flexible approach to de-risk projects and demonstrate their viability, we’re helping accelerate the development of bankable projects that are essential for this transition,
“These investments not only reduce emissions but also create jobs, build resilience, and unlock private capital for sustainable growth,” he added.
According to the statement, BII is investing across the full capital spectrum in South-East Asia including through funds, equity, debt, and innovative platforms.
Its first investment on re-entering the region was in the SUSI Asia Energy Transition
Fund (SAETF), which supports infrastructure projects across renewable energy, energy efficiency, and energy storage, and has already built a pipeline of over 800 MW of solar and wind projects.
The DFI is also building platforms like Sustainable Asia Renewable Assets (SARA), a co-investment initiative with FMO and SUSI, designed to develop a 500 MW portfolio of greenfield renewable projects.
SARA’s recent acquisition of a 39.4 MW wind project in Vietnam is expected to generate 110.9 GWh of clean energy annually and avoid more than 55,000 tons of carbon dioxide (CO2) emissions.
In equity, BII’s investment in Xurya is pioneering rooftop solar in Indonesia, targeting 600 MW by 2028 and creating over 6,000 green jobs.
On the debt side, its first direct investment in Vietnam through VPBank will enable financing for climate-related projects and small and medium-sized enterprises (SMEs), further unlocking capital for sustainable growth.
Also, under the joint Development and Construction Facility established by BII and Pentagreen Capital, $80 million has been committed to ib vogt to finance solar, hybrid solar, and battery storage projects in the Philippines, Indonesia, and other eligible geographies in South-East Asia.
The 99 MWp Tantangan Solar Power Plant is the first project to benefit from this facility. Once completed in 2026, it is expected to generate over 150 GWh of clean electricity annually, enough to power more than 82,000 households, while offsetting over 66,000 tons of CO2 emissions every year.