- British International Investment (BII) aims to catalyse £15 billion of investment in climate and development projects over 2026‑2031, including up to £8 billion from its own balance sheet.
- For every pound BII invests, it seeks to attract another pound from private investors – about 40% more private co‑investment than in its previous five‑year plan.
- BII’s new strategy raises the share of climate‑focused projects to 40% and increases the focus on gender equality. It also launches a £1.1 billion “British Climate Partners” initiative to help countries such as India and Vietnam reduce coal reliance.
Britain’s development finance institution is embarking on its most ambitious climate investment effort yet, seeking to deploy £15 billion over the next five years to support low‑carbon projects and sustainable development.
British International Investment (formerly CDC) will invest up to £8 billion of its own capital and aims to match that by drawing private investors such as insurers and pension funds. The strategy marks a significant step up in ambition at a time when official aid budgets are being squeezed by rising defence spending and domestic pressures.
BII Chief Executive Leslie Maasdorp told Reuters that mobilising private capital is now “an essential” part of the institution’s business model, rather than a nice‑to‑have.
OECD data show that official development assistance has fallen to record lows. To compensate, BII plans to offer more risk‑sharing structures and sector‑wide interventions to attract investors who might otherwise stay out of emerging markets.
Under the plan, at least 40% of BII’s commitments by value will target climate-related projects, up from 30% in the previous strategy. The share aimed at gender equality projects will rise to 30%.
The new £1.1 billion British Climate Partners initiative will support countries like India and Vietnam in transitioning from coal. BII will also focus on infrastructure, financial services and digital projects that help build wider markets rather than one‑off deals.
New initiatives
BII’s move signals a shift in climate finance from government grants to blended finance models that leverage state capital to crowd in private money. This strategy could open new avenues for UK institutional investors to gain exposure to emerging market renewables, grid upgrades and climate‑resilience projects while sharing risks with the government.
It also underscores the geopolitical dimension of climate finance: the UK is seeking to maintain influence in regions like Africa and Asia even as traditional aid budgets shrink.
By focusing on the most vulnerable countries and raising the share of climate projects, BII positions itself at the forefront of global efforts to drive equitable decarbonisation. Businesses should monitor BII’s pipeline for partnership opportunities, including supply contracts for renewable equipment, technical services and project finance.
