British International Investment (BII), the UK’s development finance institution and a dedicated impact investor, has announced a significant move to advance the low-carbon transition in South-East Asia. BII is committing $13.5 million to the South-East Asia Clean Energy Fund II (SEACEF II), managed by Singapore-based fund manager Clime Capital.
SEACEF II stands out as the first blended investment fund in South-East Asia, designed to provide early-stage high-risk capital to support promising businesses within the realms of renewable energy generation, energy efficiency, electric mobility, and electrical grid sectors. Additionally, the fund will offer supplementary capital to expedite the scale-up of its portfolio companies.
The fund’s first closing has garnered support from junior first-loss equity investors, including Allied Climate Partners, Australian Development Investments (an Australian Government initiative), the Global Energy Alliance for People and Planet (GEAPP), and Impact Assets, among others. Notable senior equity investors alongside BII comprise the Cisco Foundation, FMO, the International Finance Corporation (IFC), Norway’s Norfund, REI Co-op, and Sweden’s Swedfund International.
BII’s commitment to SEACEF II aligns with the development finance institution’s overarching objective in South-East Asia – providing the crucial capital needed to propel the region’s green energy transition. This move is also integral to BII’s broader goal, targeting 30% of total new commitments towards climate finance.
Srini Nagarajan, Managing Director, and Head of Asia at BII, emphasized the significance of unlocking clean energy solutions to address climate change. He expressed BII’s strong commitment to supporting sustainability goals in the region through climate finance, noting SEACEF II as an innovative vehicle to mobilize capital for accelerating sustainable development in Southeast Asia.
Mason Wallick, Chief Executive Officer, and Co-Founder of Clime Capital highlighted the urgency for businesses dedicated to accelerating the low-carbon transition. He emphasized Clime Capital’s unique combination of early-stage investment ability and clean-energy expertise, applied through on-the-ground teams in South-East Asia, as a catalyst for real change.
BII’s commitment to SEACEF II aligns with the United Nations’ Sustainable Development Goals on Affordable and Clean Energy (SDG 7) and Climate Action (SDG 13), contributing to the global effort to combat climate change and promote sustainable development.
Originally published: solarquarter.com