British International Investment (BII), the UK’s development finance institution, is set to unveil a range of new investments and partnerships at the ongoing COP29 climate summit in Baku.
These initiatives aim to address the climate finance gap by attracting private capital to support projects in developing economies.
Key announcements from BII this week will include a groundbreaking investment in India’s renewable energy sector in partnership with other development finance institutions (DFIs) and a prominent private investor.
Additionally, BII will reveal a milestone initiative focused on Asia, and a new blended finance facility in West Africa to mobilize local currency financing for renewable projects, particularly mini-grids.
In recent years, BII has pioneered innovative strategies to attract private investors to climate initiatives in high-risk markets. A newly launched concessionary capital facility aims to reduce investment risks, making funds and bond issuances more attractive. Between 2021 and 2023 alone, BII mobilized $1.12 billion of private capital for climate finance.
Leslie Maasdorp, Chief Executive Designate of BII, emphasized the institution’s readiness to collaborate with private investors: “BII and other DFIs are innovating to generate opportunities for private institutions; to de-risk investments so that capital is allocated to where it is needed most. By COP30, we will have significant progress to report,” he said.
The United Nations Conference on Trade and Development (UNCTAD) estimates a $2.5 trillion annual financing gap for developing countries to meet their Sustainable Development Goals, and more than half of the private capital needed for the green transition will require support from DFIs, MDBs, and other institutions to close that gap.
By Dare Akogun
