UK Helps Boost Asia' Clean and Sustainable Economic Growth with US $15 Million Commitment

British International Investment (BII), the UK’s development finance institution and impact investor, announced a US $15 million commitment towards building the investment capital needed to support Southeast Asia’s green energy transition.

Fanasy Nguyen Le

May 23, 2023 | 20:50

The US $15 million commitment is to the SUSI Asia Energy Transition Fund (SAETF), a Southeast Asia-focused energy transition infrastructure fund managed by Swiss-based firm SUSI Partners, cited from the press release by the UK Embassy in Hanoi.

Cooperating with the world's leading sustainable energy group, T&T Group will promote offshore wind power development in Vietnam in the near future.

Wind power development in Vietnam in the near future (Photo: Getty Image).

With this commitment, BII joined other development finance institutions, including AIIB, FMO, Swedfund, Norfund, and OeEB, as well as private investors in backing SAETF.

SAETF also announced its targets for infrastructure investments like renewable energy, energy efficiency, and energy storage projects, and focuses on emerging economies in Southeast Asia, including Vietnam.

The Fund will contribute to global climate mitigation goals and the Paris Agreement by financing clean energy solutions, increasing the supply of reliable and affordable electricity for businesses and consumers, and enabling access to clean energy solutions in underserved areas.

BII’s investment is also aimed at attracting further commercial investors to unleash climate finance opportunities and support green, resilient economic growth in the region. This is a great step towards UK’s support of Vietnam’s Just Energy Transition Partnership which was launched in December 2022 and targets to mobilize finance to support Vietnam to achieve its sustainability ambition.

UK Helps Boost Asia' Clean and Sustainable Economic Growth with US $15 Million Commitment

Srini Nagarajan - Managing Director and Head of Asia at BII (Photo: BII).

Managing Director and Head of Asia at BII Srini Nagarajan addressing the advantages of backing SAETF, said that BII laud the region’s climate ambitions and looks forward to collaborating with SUSI’s local teams to further develop scalable and bankable sustainable projects.

British Ambassador to Vietnam Iain Frew commented on BII’s first investment in Southeast Asia under the current 2022-2026 investment strategy.

"I am delighted to see British International Investment taking concrete action in supporting the Indo-Pacific region with a focus on climate finance. Investments such as this demonstrate the UK’s strong commitment to helping Vietnam exploit its great clean energy potential and lead transformative, sustainable economic growth," said the British Ambassador.

Southeast Asia has been one of the fastest-growing regions in the world with almost all economies in the region having more than doubled in size since 2000. The energy demand in the region has increased on average by around three percent a year over the past two decades.

According to the International Energy Agency and Imperial College London, the region’s overall sustainability ambitions require at least $200 billion of energy sector investment by 2030, of which over three-quarters needs to be channeled into clean energy. Vietnam in particular has seen a massive spike in electricity demand as it has become a manufacturing hub in recent years. To address the growing energy demand and further reduce dependence on fossil fuel generation, Vietnam has committed to reaching net zero emissions by 2050.

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Fanasy Nguyen Le