British International Investment (BII), the UK’s development finance institution, has pledged $60 million to the Green Investment Partnership (GIP), managed by Pentagreen Capital. This initiative seeks to boost private capital flows into Southeast Asia’s green infrastructure sector.
The investment is part of the Financing Asia’s Transition Partnership (FAST-P), a framework launched in 2023 by the Monetary Authority of Singapore (MAS) to mobilise blended finance for climate projects in one of the world’s most energy-intensive growth regions.
Southeast Asia requires an estimated $210 billion annually for climate-resilient infrastructure to meet its 2030 targets, a level of spending that public finance alone cannot sustain. GIP was established to address this shortfall by combining public, private, and philanthropic capital to fund projects with both environmental and commercial impact potential.
GIP has already secured $510 million in committed capital from a mix of institutional investors, development banks, and philanthropic backers. The fund’s structure blends concessional and commercial financing to de-risk early-stage climate investments, making them viable for mainstream investors.
BII’s participation includes $10 million drawn from the UK’s £100 million mobilisation facility, first announced by Prime Minister Rishi Sunak during the 2024 UN General Assembly. The facility was designed to catalyse green investment in emerging markets and crowd in private finance for sustainable infrastructure.
“GIP exemplifies the power of blended finance,” said Leslie Maasdorp, CEO of BII. “By bringing together development, public, and private capital, we are unlocking opportunities that might otherwise remain out of reach. This investment accelerates the low-carbon transition in Southeast Asia and demonstrates how innovative technologies and business models can drive real change.”
BII’s capital commitment played a critical role in achieving GIP’s first close, helping to strengthen its credit profile and attract follow-on investment from commercial players.
GIP’s initial portfolio reflects its focus on scalable decarbonisation. Its first investment will finance a bioenergy programme with BECIS Bioenergy, which converts agricultural waste and sustainably sourced biomass into renewable steam. The project is expected to reduce more than 100,000 tonnes of CO₂ emissions annually while supporting rural economies dependent on agriculture.
A second investment involves a renewable energy portfolio managed by ib vogt, comprising utility-scale solar farms and battery storage systems across multiple Southeast Asian markets. These assets are projected to cut an estimated 257,000 tonnes of emissions each year, while reinforcing regional grid stability.
Both projects are positioned to demonstrate replicable models for private sector participation in low-carbon infrastructure, particularly in markets where project-level risks and policy uncertainty have traditionally deterred institutional investors.
The Green Investment Partnership reflects a deepening collaboration between the UK and Singapore on climate finance. Through FAST-P, MAS and its partners aim to channel blended capital into priority sectors such as renewable energy, electric mobility, circular economy infrastructure, and emerging carbon solutions.
