Investment body in the UK designates £50 million to accelerate Vietnam's shift towards sustainable energy
British International Investment (BII) has announced a strategic plan to invest up to £500 million (€578m) in climate finance across Southeast Asia between 2022 and 2026, with a focus on Vietnam[1]. This investment aims to help Vietnam achieve net-zero emissions by 2050[1][3][5].
The funding, totalling $50 million, marks BII's first climate-directed debt facility in Vietnam and has been allocated to Vietnam Prosperity Joint-Stock Commercial Bank[7]. This investment is expected to support Vietnam's green transition, which the World Bank has estimated requires $368bn[2].
BII's approach emphasizes providing patient, flexible capital for impact-driven businesses in Vietnam[4]. The focus sectors include sustainable agriculture, clean transportation, circular economy, and renewable energy[3]. By supporting these sectors, BII aims to promote economic growth and social inclusion, while helping Vietnam transition away from fossil fuel dependence and achieve its climate goals[1][3].
In addition to the direct investment, BII is partnering with regional banks and international co-lenders like Sumitomo Mitsui Banking Corporation (SMBC), Export Finance Australia, FinDev Canada, and Japan International Cooperation Agency (JICA) to mobilize broader investment and introduce international best practices[1][3][5].
The $350m loan facility also includes participation from SMBC, Export Finance Australia, FinDev Canada, and JICA[8]. The Dam Nai wind farm, the cornerstone asset of the renewable energy platform developed by BII, FMO, and SUSI Partners, is a significant part of this investment[9].
Vietnam, one of the world's most vulnerable countries to climate change, has emerged as one of the fastest-growing per-capita greenhouse gas emitters[6]. The funding is aimed at addressing this issue and supporting the country's green transition.
As BII continues to invest in Southeast Asia, it is also committed to fostering partnerships that help unlock further private sector investment, thus mobilizing additional resources and delivering inclusive low-carbon growth across the region[1].
References: 1. British International Investment 2. World Bank 3. Reuters 4. The Straits Times 5. The Guardian 6. Climate Analytics 7. BII Press Release 8. BII Press Release 9. BII Press Release
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