British International Investment (BII), the UK’s development finance institution, has pledged $30m to the Industrial Transformation Programme (ITP) under the Monetary Authority of Singapore’s Financing Asia’s Transition Partnership (FAST-P). This commitment, structured as a junior tranche, is intended to attract commercial capital by assuming higher risk, positioning BII as the largest catalytic investor after MAS.
The ITP, managed by BlackRock through its infrastructure credit platform, seeks to address South-East Asia’s escalating energy-related CO2 emissions, which could rise by a third by 2050 without intervention. The region requires an estimated $210b annually to bridge its climate investment gap.
BII’s investment aims to accelerate the decarbonisation of high-emitting sectors across South-East Asia by deploying risk-bearing anchor capital. This marks BII’s second commitment under FAST-P, following its investment in the Pentagreen Green Investment Partnership. The initiative aligns with BII’s strategy to allocate at least 40% of new investments to climate finance from 2026 to 2031.
This strategic move underscores BII’s commitment to fostering sustainable development and addressing climate challenges in the region. As South-East Asia grapples with significant environmental concerns, BII’s investment could play a crucial role in facilitating the transition to a low-carbon economy.
