- £1.8 billion invested in total with nearly 60 per cent committed to Africa
- The UK’s development finance institution made over $1 billion of green commitments for emerging markets in 2025
British International Investment, the UK’s impact investor and development finance institution, today published its 2025 Annual Review.
It showed that the UK’s development finance institution had made $1.1 billion (£827 million) of climate finance commitments in 2025. It is the first time that BII’s climate commitments have exceeded $1 billion in a single year. Over the last four years, BII made $3.3 billion (£2.6 billion) of climate finance investments. In 2025, BII mobilised a further $774 million (using the OECD methodology) for climate finance from private investors,
Climate finance qualifying investments included a wide range of commitments – from utility-level renewable energy generation projects in countries like Egypt to e-mobility start-ups in Kenya.
In total made £1.8 billion of investments over the year, with £1.07 billion going to African businesses and £712 million committed to companies in Asia. About £40 million of commitments were made in Ukraine.
BII said its annual portfolio level return over a seven-year weighted average was 3.8 per cent and it now had investments in nearly 1,700 companies.
Leslie Maasdorp, Chief Executive of BII, said: “The record amount of climate finance we have provided underlines our commitment to combating the climate emergency in countries that are among the most vulnerable to its impacts. At least 40 per cent of all our investments over the next five years will qualify as climate finance.
“At the same time, we continue to deliver exceptional value for the UK taxpayer by supporting the economies of fragile regions in the world, which in turn delivers a security dividend to the UK as well as a financial return on behalf of the taxpayer.”
Climate finance deals in 2025 included:
- The Allianz ACE Fund: A BII anchored blended finance fund with $150m of DFI commitments that is set to mobilise $850 million from private institutions
- The Gulf of Suez Wind Farm and the Obelisk solar and battery storage development in Egypt
- ReNew: A $100 million to accelerate the growth of its solar manufacturing business in India
- Green Investment Partnership (GIP): A $60 million investment in a blended finance fund managed by Pentagreen Capital, the investment platform established by HSBC and Temasek.
- ARC Ride: a pioneering electric motorbike manufacturer and battery-swapping company in Nairobi, Kenya
In her statement in the Annual Review, BII’s Chair, Diana Layfield, said: “The past year has been defined by global shifts that are reshaping the landscape for development finance. As we conclude our current strategy period and look ahead to the next, it is clear the world in which we operate has become more complex and more demanding of long‑term investment.
“Financing for development is changing. At the same time, the gap between countries – particularly the most climate‑ and conflict‑vulnerable – is widening. And the urgency of tackling climate change is greater than ever. This context underscores the need for more effective partnerships, greater mobilisation of private capital and investment that delivers sustainable economic growth.”
BII also committed £585 million of commitments that qualified as gender-finance in support of women and girls, up from £499 million in 2024.
The number of people directly employed by BII’s investee companies was 1.06 million. In addition, by improving access to electricity and finance, as well as supporting local wages and supply chains, the investments we make indirectly support many more businesses and livelihoods.”
The size of the portfolio at the end of 2025 was £6.6 billion.
