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BII Commits USD 25 Million to Climate-Focused Fund in South Asia

This fund is dedicated to investing in companies and projects driving the transition to a low-carbon and resource-efficient economy, primarily focusing on India and parts of Southeast Asia.

December 06, 2023. By Abha Rustagi

British International Investment (BII), the UK's development finance institution (DFI) and impact investor, has pledged a significant USD 25 million to the first close of the GEF South Asia Growth Fund III (GEF SAGF III).

This fund is dedicated to investing in companies and projects driving the transition to a low-carbon and resource-efficient economy, primarily focusing on India and parts of Southeast Asia.

The Indian subcontinent faces increasing vulnerability to climate change, marked by a rise in extreme weather events such as flash floods and heat waves. In response, the Indian government has set ambitious targets, aiming to meet 50 percent of its electricity requirements from renewable sources by 2030 and achieve net-zero emissions by 2070. To realize these goals, an estimated USD 160 billion per year is deemed necessary until 2030.

The GEF SAGF III adopts a high-impact climate finance strategy, targeting three key areas crucial for India's transition to a green and resilient economy: adaptation, mitigation, and circular economy initiatives.

With BII's substantial investment, the fund is poised to tap into various sectors, encompassing the renewable energy value chain, energy efficiency, food and water security solutions, low-carbon transition, waste recovery, mobility solutions, and smart city innovations.

Alexander Ellis, British High Commissioner to India, emphasized the significance of collaborative efforts in combating climate change, stating, "Combating climate change together is one of the top UK/India priorities. Today's announcement shows the UK’s commitment to supporting India’s green growth and creating new, green jobs, and BII’s work to reduce greenhouse gas emissions while alleviating poverty."

Srini Nagarajan, MD and Head of Asia at BII, expressed confidence in the transformative potential of the GEF SAGF III, building on their experience with the predecessor fund, GEF SAGF II. Nagarajan stated, "Our renewed commitment with GEF SAGF III will accelerate India and Southeast Asia’s journey towards a greener future. The fund will support our goal of enabling sustainable practices, with a focus on renewable energy, efficient resource management, and cutting-edge environmental solutions."

The GEF SAGF III succeeds the GEF SAGF II, where BII had also committed USD 25 million, showcasing a continued commitment to advancing climate-focused initiatives in the region.

Tags:

British International Investment

GEF SAGF III

GEF South Asia Growth Fund