UK Pact

About the fund

The ASEAN–UK Green Transition Fund is a blended finance facility designed to accelerate decarbonization and climate resilience across Southeast Asia through concessional capital and risk mitigation instruments. Established as a partnership between the UK government and ASEAN member states, the fund deploys a combination of grants, concessional debt, and equity to mobilize private investment in renewable energy, energy efficiency, sustainable transport, and climate adaptation projects. The fund targets mid-market infrastructure and industrial businesses seeking to transition away from fossil fuel dependence while strengthening regional climate commitments under the Paris Agreement. By structuring deals with below-market returns on capital and first-loss guarantees, the facility aims to reduce perceived investment risk and attract commercial co-investors to climate solutions across the region. The fund's impact framework emphasizes measurable greenhouse gas emissions reductions, job creation in green sectors, and improved climate resilience in vulnerable communities.