British International Investment Pledges $25 Million to Propel Green Initiatives in South Asia

BII’s Commitment Fuels GEF South Asia Growth Fund III for Low-Carbon Economy Development

Today, the UK’s development finance institution, British International Investment (BII), announced a $25 million commitment to the GEF South Asia Growth Fund III’s (GEF SAGF III) first close. The fund aims to invest in projects fostering the transition to a low-carbon and resource-efficient economy, primarily in India and parts of Southeast Asia.

Given the vulnerability of the Indian subcontinent to climate change, with rising incidents of extreme weather, the fund will play a crucial role in supporting India’s ambitious targets. The Indian government aims to derive 50% of its electricity from renewable sources by 2030 and achieve net-zero emissions by 2070, requiring an estimated $160 billion per year until 2030.

The GEF SAGF III’s high-impact climate finance strategy focuses on Adaptation, Mitigation, and Circular Economy. BII’s investment will enable the fund to explore sectors such as the renewable energy value chain, energy efficiency, food and water security, low-carbon transition, waste recovery, and smart city innovations.

Alexander Ellis, British High Commissioner to India, emphasized the UK’s commitment to combatting climate change and supporting India’s green growth. BII’s investment aligns with the goal of reducing greenhouse gas emissions while addressing poverty.

Srini Nagarajan, Managing Director and Head of Asia at BII, expressed pride in partnering with GEF to promote sustainable energy in Asia. He highlighted the transformative potential of GEF SAGF II and expects the renewed commitment to accelerate India and Southeast Asia’s journey towards a greener future.

Raj Pai, Managing Partner at GEF Capital, commended BII as a critical catalyst for scaling climate finance in the region. BII’s expertise in climate investments, ESG, and developmental impact aligns with GEF’s goal of defining productive, sustainable, and inclusive growth through climate impact investment. The GEF SAGF III builds on the success of its predecessor, GEF SAGF II, where BII had also committed $25 million.