Around the world, we are witnessing the escalating impacts of climate change: extreme weather events, record temperatures, and devastating floods are becoming more frequent and severe. These challenges threaten decades of hard-fought development progress and deepen existing inequalities. According to the World Bank, climate change could push up to 132 million people into poverty by 2030.
At British International Investment, we see climate change not only as a risk but as a development challenge and an investment imperative. We invest in some of the world’s most climate vulnerable countries, where the effects are already severe. We also recognise the unique opportunities that many of our markets offer in the transition to net zero. Africa, for example, benefits from high solar radiation, presenting immense potential for renewable energy solutions.
In 2020, we launched our Climate Change Strategy. At the time, there was no clear blueprint for how a development finance institution should align with the goals of the Paris Agreement. Five years on, we are proud of the progress we’ve made. Since 2020, we have invested £2.3 billion ($2.9bn) in climate finance across Africa and Asia, mobilising a further $1.6 billion through partnerships. More than 40 per cent of our new commitments between 2022 and 2024 have supported climate-positive solutions – exceeding our original targets.
Yet we know that Paris alignment is about more than climate finance, and we are clear-eyed about the work that remains. A significant financing gap persists, especially in adaptation and resilience. We are committed to helping bridge this gap. Through partnerships with governments, investors, and the private sector, we are scaling solutions that deliver both climate and development benefits. We use the full range of financial tools we have available – from growth and catalytic capital to technical assistance – to support sustainable, inclusive growth.
This report reflects on our journey so far – our approaches, processes and the tools we’ve developed. It is a journey of learning and refinement. Later in the report, our Head of Climate, Diversity and Advisory Amal-Lee Amin shares five key lessons from our first five years of working towards Paris alignment. We look forward to building on these and hope these insights will be useful to others navigating similar paths.
Climate change poses both risks and opportunities across every sector. We are dedicated to supporting each country we work with on its just and resilient pathway to net zero. By investing in innovation, mobilising capital and systemic change, we can shape a net zero and climate-resilient future where no one is left behind.
