British International Investment (BII) has officially opened a call for asset managers to submit proposals to partner with the development finance institution to funnel private investment into climate-related projects in emerging economies.
Last year the UK prime minister announced that BII would manage a new £100m mobilisation facility to boost the flow of private capital into emerging markets that are considered too risky by global investors.
Up to £50m of the facility has been ring-fenced for concessional capital for asset manager proposals with a strong potential for accelerating private investment and which demonstrate large-scale climate impact.
There will also be the opportunity to access non-concessional investment funding from BII, which has investments in over 1,580 businesses across 65 countries and total net assets of £8.5bn.
BII is partnering with Mercer on the call for proposals. BII previously said a panel of experts would identify up to three proposals to go through BII’s investment committee process for funding consideration from this year onwards.
The initiative is framed as a means by which BII and institutional investors can strengthen the UK’s position as a leader in climate finance that benefits emerging markets.
Minister for development Anneliese Dodds said countries exposed to the climate crisis need urgent access to finance to tackle and adapt to the climate crisis.
“At the same time UK financial institutions are ideally placed to provide global leadership in climate finance and tap into these emerging markets, generating growth at home and providing much needed finance abroad,” she said.
“By bringing together private and public expertise and capital, the UK is leading the world in mobilising the finance countries need to tackle the impacts of the climate crisis.”
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