British International Investment (BII), the United Kingdom’s development finance institution, announced $55 million in new climate finance commitments on Monday, including major investments in Kenya.
The announcements, first revealed by U.K. Prime Minister Rishi Sunak at the COP28 climate summit last week, highlight the institution’s “accelerating commitment to providing climate finance to support those countries most vulnerable to the impacts of the climate emergency,” officials said.
Of the total, $2.1 million will fund solar-powered irrigation systems for smallholder farmers in Kenya. The money will go to Nairobi-based SunCulture, which will now be able to offer irrigation products to 9,000 more farmers at 25-40% lower upfront costs.
British International Investment has also committed $5 million in debt financing to BasiGo, a Kenyan transportation company, for the delivery of 100 electric buses. The move aligns with the institution’s broader strategy to reduce greenhouse gas emissions and waste in developing countries while promoting sustainable food production.
Other major investments announced include $25 million for climate mitigation and circular economy projects in India and $6 million for Wavemaker Impact, Southeast Asia’s first climate tech venture capital fund.
British International Investment set a goal to dedicate 30% of its new financing commitments to climate projects from 2022-2026. In 2022, 46% of its capital — $591 million — went to climate-related investments.
That has allowed its climate finance portfolio balloon from $812 million in 2020 to $1.43 billion last year. Over the same period, the emissions intensity of British International Investment-backed projects declined by almost 50%.
“Our provision of climate finance where it is needed the most is making a real difference to the lives of millions of people,” Amal-Lee Amin, Managing Director and Head of Climate, Diversity and Advisory at BII said Monday. “Our investee partners are demonstrating that the fight against the climate emergency can be won.”
