The UK Foreign, Commonwealth & Development Office (FCDO) and the United Nations Economic & Social Commission for Asia and the Pacific (ESCAP), today launched the ASEAN Green Investment Catalyst (AGIC) initiative to accelerate sustainable foreign direct investment (FDI) across Southeast Asia. The £2.1 million initiative, funded through the ASEAN - UK Green Transition Fund, will support the ASEAN Secretariat and ASEAN member States with the implementation of the recently adopted ASEAN Regional Investment Promotion Action Plan. The initiative represents a landmark collaboration focusing specifically on channelling FDI into strategic green sectors crucial for ASEAN's transition to a low-carbon economy.
"This strategic partnership between the UK, ESCAP, the ASEAN Secretariat and ASEAN member States comes at a critical time when mobilising private investment for climate action is more urgent than ever," said Armida Salsiah Alisjahbana, United Nations Under-Secretary-General and Executive Secretary of ESCAP. "By supporting the implementation of the ASEAN Regional Investment Promotion Action Plan, this initiative will help position ASEAN as a unified destination for sustainable investment, accelerating the region's green transition, while promoting inclusive economic growth."
The project builds on ESCAP's long-standing collaboration with the ASEAN Coordinating Committee on Investment and the ASEAN Secretariat in developing the Regional Investment Promotion Action Plan, which was formally adopted by ASEAN Economic Ministers in September 2024. The Action Plan represents ASEAN's first coordinated approach to attracting green investment across value chains, marking a significant shift toward regional collaboration in investment attraction for sustainable development.
"The UK is delighted to support this innovative initiative that will help unlock green investment across Southeast Asia," said Sarah Tiffin, UK Ambassador to ASEAN. "Through the Green Transition Fund, we are demonstrating the UK's leadership in climate finance and our commitment to supporting ASEAN's ambitious climate goals. This initiative exemplifies the transformative power of UK-ASEAN cooperation in accelerating the region's journey toward net-zero emissions while creating sustainable economic opportunities."
The AGIC project will facilitate the development of investment-ready projects in strategic green transition sectors and develop an innovative tool to match these projects with investors. This pioneering approach aims to create a sustainable pipeline of investment ready green projects across ASEAN for cross-border investors, attracting FDI to the region and demonstrating the UK's commitment to leveraging technology and innovation in climate action. It will also deliver capacity building support to ASEAN Investment Promotion Agencies and contribute towards the ASEAN Investment Forum in 2025 and 2026 to showcase green investment ready opportunities to investors.
The partnership is significant as it aligns ESCAP's key role in Asia and the Pacific, the UK's COP26 legacy of mobilizing climate finance and ASEAN's climate commitments.
This initiative also represents a key milestone in implementing the ASEAN-UK Plan of Action (2022-2026) and advances the UK's commitment as an ASEAN Dialogue Partner to support the region's sustainable development objectives.
About ASEAN-UK Green Transition Fund (GTF) Programme
The ASEAN-UK Green Transition Fund (GTF), with up to GBP 40 million from 2024-2029, is the UK's flagship programme to accelerate ASEAN's transition to a clean and climate resilient economy by reducing emissions in key sectors, supporting green economic growth, and improving livelihoods of vulnerable people.
The ASEAN-UK GTF will provide technical assistance activities throughout the region, targeting all ten ASEAN Member States (AMS), and Timor-Leste. It works with ASEAN institutions, such as the ASEAN Secretariat, ASEAN Centres and Facilities, and various ASEAN Entities and Sectoral Bodies.
