‘The only chance we have of meeting the monumental funding demands of the climate emergency is to mobilise private capital at scale,’ says chief executive
British International Investment, the UK’s development finance institution and impact investor, has partnered with impact investment manager BlueOrchard to design a new fund aimed at mobilising insurance capital for climate-related financing.
The planned BlueOrchard Climate Action Mobilisation Fund targets more than £190m ($250m) and has been structured to meet UK Solvency II requirements, enabling insurers to invest at scale in climate projects overseas.
British International Investment ringfenced at least half of a £100m mobilisation facility announced by the prime minister at the UN General Assembly in 2024 to support this work.
The fund aims to provide senior loans to banks, microfinance providers and other financial intermediaries that supply climate finance to small and medium-sized enterprises operating in developing economies – sectors that have historically faced barriers to accessing long-term investment.
Leslie Maasdorp, chief executive at British International Investment, said the mobilisation of private capital remained essential to meeting global climate challenges.
“The only chance we have of meeting the monumental funding demands of the climate emergency is to mobilise private capital at scale,” he said.
“Today’s announcement demonstrates how British development finance, working alongside a private institution, can forge a path in getting capital to where it is needed most.”
The problem that’s being addressed
Recent research shows the insurance sector is struggling to keep pace with the scale and complexity of climate-driven losses. ZestyAI’s 2025 State of Property Insurance report found that 61% of P&C executives believe the industry is not adapting fast enough.
Read: Briefing – Lloyd’s in climate crosshairs as campaigners call for fossil fuel exit
Read: The Big Question – What impact could greenwashing have on insurance provision and management?
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At the same time, the economic impact of extreme weather continues to escalate, with Zurich estimating around £1.55tn in losses from natural catastrophes over the past decade and insured losses rising as a share of global GDP.
Michael Wehrle, chief executive at BlueOrchard, said the mandate was designed specifically with insurers in mind.
“With an almost 25-year track record, BlueOrchard is a pioneer in impact investing across emerging markets,” he added.
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