BII, the UK’s development finance institution and impact investor, has declared a commitment of $25 million (Rs 208 crore) to the initial phase of the GEF South Asia Growth Fund III (GEF SAGF III). This fund aims to support enterprises and initiatives fostering the shift towards a more eco-friendly and resource-efficient economy, primarily focusing on India and certain parts of Southeast Asia. Highlighting India's susceptibility to climate change, BII notes the escalating occurrences of severe weather events such as flash floods and heatwaves.
India has established ambitious objectives to fulfill 50 percent of its electricity needs from renewable energy sources by 2030 and achieve net zero emissions by 2070. Meeting these targets requires an estimated annual investment of $160 billion (Rs 1,332,960 crore) until 2030.
The fund's unique climate finance strategy, aimed at generating significant impact, focuses on three key areas crucial for India's shift toward a more environmentally friendly and resilient economy: Adaptation, Mitigation, and Circular Economy. With BII's investment, the fund will engage across various sectors, encompassing the renewable energy value chain, energy efficiency, solutions for food and water security, low-carbon transitions, waste management, mobility solutions, and innovative smart city initiatives.
Alexander Ellis, the British High Commissioner to India, expressed, "Addressing climate change collaboratively ranks high among the priorities of the UK and India. Today's announcement underscores the UK's dedication to supporting India's sustainable growth, fostering the creation of new environmentally friendly jobs, and BII's efforts to reduce greenhouse gas emissions while tackling poverty."
Srini Nagarajan, Managing Director & Head of Asia at BII, remarked, "We take pride in our collaboration with GEF to advance sustainable energy in Asia. We've witnessed firsthand the transformative potential of GEF SAGF II, and our renewed commitment with GEF SAGF III will expedite India and Southeast Asia's progress toward a more sustainable future. The fund will aid in our objective of promoting sustainable practices, emphasizing renewable energy, efficient resource management, and cutting-edge environmental solutions."
Raj Pai, Managing Partner at GEF Capital, stated, "BII has played a pivotal role in scaling climate finance in South and Southeast Asia, leveraging its expertise in climate investments, ESG, and impactful developmental initiatives. GEF is thrilled to have BII as a long-term partner in shaping productive, sustainable, and inclusive growth through our climate impact investments."
GEF SAGF III succeeds its precursor, GEF SAGF II, in which BII had previously committed $25 million.
