BII Commits £308 Million in Climate Finance to Accelerate Clean Energy Transition in South-East Asia

British International Investment (BII), the UK’s development finance institution, has announced a commitment of £308 million in climate finance across South-East Asia during its current strategic period, advancing its goal to invest up to £500 million by 2026.

The investments are expected to enable more than 1.8 GW of clean energy capacity and prevent over 1.6 million tonnes of greenhouse gas emissions, supporting the region’s shift away from fossil fuels and strengthening climate resilience.

South-East Asia remains highly exposed to climate risks including rising sea levels, extreme weather, and resource insecurity, while coal and natural gas continue to dominate its power mix. Despite ambitious government-led net-zero targets by 2050, the region requires an estimated US$210 billion annually in green infrastructure investment—far beyond public funding capacity.

BII CEO Leslie Maasdorp, speaking during his first visit to the region, emphasized the significance of the commitment:

“Our investment reflects our ambition to deliver climate finance where it matters most. By taking a patient and flexible approach to de-risk projects, we are accelerating the development of bankable solutions that drive clean energy transition while unlocking private capital.”

BII is deploying financing across equity, debt, funds, and blended finance mechanisms. Its first commitment upon re-entering the region was to the SUSI Asia Energy Transition Fund (SAETF), which focuses on renewable energy, energy efficiency, and storage solutions. The fund has already developed a pipeline exceeding 800 MW of solar and wind projects.

The institution is also supporting regional renewable platforms, including the Sustainable Asia Renewable Assets (SARA) initiative—developed with FMO and SUSI—to build a 500 MW portfolio of greenfield projects. SARA recently acquired a 39.4 MW wind project in Vietnam, expected to produce 110.9 GWh annually and avoid more than 55,000 tonnes of CO₂ emissions.

In Indonesia, BII’s equity investment in Xurya aims to scale rooftop solar capacity to 600 MW by 2028, supporting job creation and emissions reduction. Additionally, its first direct debt investment in Vietnam via VPBank will provide financing for climate-related and SME projects.

Under a joint Development and Construction Facility with Pentagreen Capital, $80 million has been committed to ib vogt to support solar, hybrid, and battery storage assets in the Philippines, Indonesia, and other eligible markets. The first project under this framework—the 99 MWp Tantangan Solar Power Plant—is expected to be completed in 2026 and will generate more than 150 GWh of electricity annually, enough to power over 82,000 households and offset approximately 66,000 tonnes of CO₂ per year.