UK launches £1.1-B program for Asia’s clean energy push

British International Investment (BII) has committed to extending £1.1 billion over five years to back the energy transition in developing economies in Asia, including the Philippines.

The United Kingdom’s development finance institution and impact investor announced on Friday that the launch of British Climate Partners (BCP). It is meant to ramp up efforts for the net-zero goal in the region.

BCP stressed a focus on Asian countries as they consumed three-quarters of the global coal demand in 2024.

But the BII likewise acknowledged the hefty investment needed to shift away from coal—known as the cheapest source of power. Southeast Asian countries require about $210 billion per year. India alone needs at least $160 billion annually until 2030.

Armed with a £1.1-billion fund, BII said it would team up with private investors to further increase capital deployed for climate projects, while reducing early-stage risks.

“Asia’s energy transition will depend on mobilizing private capital at scale and British Climate Partners is designed to do exactly that,” Srini Nagarajan, managing director and head of Asia, BII, said in a statement.

“Through this new initiative, we’ll use our experience, capital and partnerships to build platforms, derisk projects and crowd in long-term investment into commercially viable climate opportunities across the region,” the official added.

The initiative is particularly zooming in on India, the Philippines, Indonesia, Vietnam, Thailand, Malaysia and other Southeast Asian countries that have coal-based assets and a growing call for clean power.

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In 2020, the Philippines imposed a moratorium on new coal facilities to cut carbon emissions and support the government’s push to shift to clean energy.

But the Department of Energy (DOE) clarified that there was no total ban on developing coal-fired power plants in the country. Existing and operational facilities that have made commitments for expansion can still pursue these.

A proposal to lift the moratorium was floated against the backdrop of the Middle East war. The conflict could result in higher electricity rates due to elevated fuel prices.

Energy Secretary Sharon Garin expressed openness to this as long as “cleaner technology” would be used and provided “there will be a transition plan for that coal power plant to eventually transition to cleaner energy.”