BII Enters PH, Invests $15M in Energy Transition Fund

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by KnowESG
KnowESG_Sustainable finance
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British International Investment (BII), the UK's impact investor and development finance institution, has announced a $15 million investment in the SUSI Asia Energy Transition Fund (SAETF).

Managed by SUSI Partners, a Swiss-based firm, SAETF focuses on Southeast Asia's energy transition infrastructure. BII's commitment marks its entry into Southeast Asia and its support for clean and sustainable economic growth, aligning with the region's green energy transition goals.

BII joins other development finance institutions like AIIB, FMO, Swedfund, Norfund, and OeEB, along with private investors, in backing SAETF. This investment kickstarts BII's plan to invest up to £500 million in climate finance in the Indo-Pacific region and supports its target of allocating 30% of new commitments to climate finance.

SAETF targets infrastructure investments across the energy transition spectrum, including renewable energy, energy efficiency, and energy storage, with a focus on emerging economies in Southeast Asia, including the Philippines. The Fund contributes to global climate mitigation goals, the Paris Agreement, and promotes clean energy solutions, reliable electricity supply, and improved access to clean energy in underserved areas.

Southeast Asia has experienced significant economic growth, with economies having doubled since 2000. Consequently, energy demand in the region has increased by an average of three per cent annually over the past two decades.

The Philippines, with a strong economic growth rate and a projected 6 to 7 per cent growth in 2023, aims to reduce CO2 emissions by 75% by 2030. Achieving the region's sustainability goals requires over $200 billion in energy sector investments by 2030, with a significant portion allocated to clean energy.

BII's investment aims to attract additional commercial investors to seize climate finance opportunities and support green and resilient economic growth in Southeast Asia. This aligns with the British Investment Partnerships (BIP) launched by the UK government in the Philippines to mobilise capital and expertise for sustainable infrastructure development and clean energy transition.

Partnering with SUSI Partners, SAETF benefits from their expertise as a specialised investment manager with a proven track record in energy transition infrastructure investments. In the Philippines, SAETF and Pacific Impact, a regional developer, have invested in a ground-mounted solar PV plant, and SAETF has committed to a pipeline of rooftop solar PV projects with Entoria Energy. These investments reflect BII's renewed approach to climate finance in the Philippines, a priority market in Southeast Asia.

Wymen Chan, Head of Asia at SUSI Partners, emphasised the fast-growing energy demand in Southeast Asia and the importance of sustainable infrastructure development for the region's economic growth.

Laure Beaufils, the British Ambassador to the Philippines, expressed satisfaction with BII's investment in the Philippines through SAETF, highlighting the UK's commitment to supporting the country's climate-resilient energy transition and sustainable economic growth.

Srini Nagarajan, Managing Director and Head of Asia at BII underlined the company's 30-year history of investing in Asia and regarded SAETF as an excellent entry point for BII in Southeast Asia. He commended the region's climate ambitions and anticipated collaboration with SUSI's local teams to develop scalable and bankable sustainable projects.

BII's commitment contributes to achieving the United Nations' Sustainable Development Goals on Affordable and Clean Energy (SDG 7), Decent Work and Economic Growth (SDG 8), and Climate Action (SDG 13).

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Source: UK Govt.

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