British International Investment (BII) Launches Initiative to Boost Climate Investments in Emerging Economies

British International Investment (BII), the UK’s development finance institution and impact investor, has unveiled a new initiative under its recently launched $127 million Mobilisation Facility. The program aims to enhance the flow of private capital into emerging economies that are often considered too high-risk for global investors.

Emerging markets, which are among the most vulnerable to climate change, face a critical need for private capital to support the global climate transition. However, widespread perceptions of investment risk have deterred private sector involvement, creating significant financing gaps.

To address these challenges, BII has partnered with Mercer, a leading global investment firm, to invite innovative investment proposals designed to overcome barriers to capital flow. This initiative will leverage concessional funding to attract private investment into climate-related projects within emerging and developing economies.

Set to launch in the new year, the Call for Proposals will invite asset managers with proven expertise in climate finance and a focus on emerging markets to submit creative strategies. BII has allocated up to $63.7 million from the Mobilisation Facility for selected proposals, alongside the possibility of accessing additional non-concessional investment funding from BII.

Proposals must demonstrate strong potential for mobilizing significant private investment, achieving impactful outcomes, and ensuring scalability and sustainability. A panel of experts will evaluate submissions, selecting up to three proposals to advance through BII’s investment committee process for funding consideration starting in 2025.

BII also plans to use the remaining funds within the Mobilisation Facility to identify new projects through its established investment channels, covering a variety of sectors, regions, and financing mechanisms.

Over the past two years, BII has invested over $1.2 billion in climate finance and facilitated nearly $1.2 billion in private capital for climate projects, reinforcing its commitment to addressing the global climate emergency.

This initiative underscores BII’s role as a leader in mobilizing private investment to tackle the urgent climate challenges facing emerging economies.

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