The United Kingdom has launched a £1.1 billion program to support the clean energy transition in developing Asian economies, including the Philippines, through its development finance institution British International Investment (BII).
The initiative, called British Climate Partners (BCP), was announced on Friday and is designed to ramp up efforts toward net-zero emissions in the region. BCP's focus on Asia is driven by the fact that the region accounts for three-quarters of global coal demand.
BII acknowledged the massive investment required to move away from coal, which remains the cheapest energy source. Southeast Asian nations need about $210 billion annually for the transition, while India requires at least $160 billion per year through 2030.
With the £1.1 billion fund, BII plans to collaborate with private investors to increase capital for climate projects and reduce 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," said Srini Nagarajan, managing director and head of Asia at BII. "Through this new initiative, we'll use our experience, capital and partnerships to build platforms, de-risk projects and crowd in long-term investment into commercially viable climate opportunities across the region."
The initiative targets India, the Philippines, Indonesia, Vietnam, Thailand, Malaysia, and other Southeast Asian countries with coal-based assets and growing demand for clean power.
In 2020, the Philippines imposed a moratorium on new coal plants to cut emissions, though the Department of Energy later clarified that existing facilities with expansion commitments could still proceed. A proposal to lift the moratorium emerged amid the Middle East war, which could raise electricity rates due to higher fuel prices.