Climate finance has a math problem: trillions needed, billions delivered. But a new alliance between British International Investment (BII), the UK’s development-finance institution, and BlueOrchard Finance Ltd, the impact-investment arm of Schroders Group, aims to rewrite that equation.
Enter a landmark partnership. On November 10 they launched the BlueOrchard Climate Action Mobilisation Fund (BOCAMF), which is a blended-finance vehicle designed to channel more than $250 million from insurers into climate-resilient projects across the Global South.
This debut fund is the first winner of BII’s Mobilisation Facility, a £100 million initiative unveiled by Prime Minister Keir Starmer at UNGA 2024.
With BII’s anchor investment unlocking over £50 million in concessional capital, BOCAMF offers a fresh blueprint for de-risking private investment in high-impact climate action.
Why Insurance Capital Matters
Climate shocks hit hardest in economies that can least afford them. SMEs, which are the backbone of Africa and Asia’s growth, need financing for solar irrigation, flood-proof infrastructure, and resilient agriculture.
Insurers, meanwhile, manage trillions in long-term assets ideally matched to such projects, but capital rules like Solvency II keep them tethered to low-risk instruments.
BOCAMF bridges that gap. Its structure aligns with insurers’ risk-return requirements while channelling funds toward sustainable growth, uniting investors, DFIs, and communities in a single value chain.
Inside BOCAMF: The Architecture
- Layered capital stack: BII’s junior-equity tranche provides first-loss protection, enabling senior layers that satisfy insurers’ regulatory constraints.
- Investment-grade senior notes: Designed for predictable, fixed returns compliant with Solvency II.
- Deployment strategy: Senior loans to banks, MFIs, and intermediaries that finance SMEs tackling climate adaptation and mitigation from solar-powered irrigation in sub-Saharan Africa to flood-resilient supply chains in Asia.
Targeting a final close above $250 million, the fund is already in discussions with global life insurers for senior-note participation and with impact investors for equity exposure.
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Track Record: BlueOrchard’s Proof of Concept
Founded in 2001 under UN auspices, BlueOrchard has financed over 300 million beneficiaries in emerging markets.
Its InsuResilience Investment Fund II, which closed at $100 million in early 2025, has already provided affordable climate-risk insurance to 70 million people, backed by BII and the Nordic Development Fund. BOCAMF builds directly on this lineage of scalable, measurable impact.
Voices of Leadership
“The only chance we have of meeting the monumental funding demands of the climate emergency is to mobilise private capital at scale.”
Leslie Maasdorp, CEO of BII
“Meeting investors’ needs while enabling impactful investments is our top priority. This mandate is tailored to insurers seeking both stability and sustainability.”
Michael Wehrle, CEO of BlueOrchard
BII’s Mobilisation Facility, which is its flagship blended-finance programme, plans to commit at least 30% of new investments to climate finance between 2022 and 2026, with nearly £1 billion in private capital mobilised so far.
A Blueprint for the Next Wave of Climate Finance
BOCAMF is more than just a fund; it’s a template for channelling insurance capital into frontier-market resilience.
By absorbing risk and crowding in institutional money, it strengthens local economies, advances SDG 13 (Climate Action), and demonstrates how public-private innovation can fill the climate-finance gap.
As COP30 in Brazil approaches, expect more insurer–DFI collaborations to follow this model, leveraging long-term capital to fund a liveable planet.
The takeaway: profit and purpose can finally share a balance sheet.
British International Investment and BlueOrchard Overview
British International Investment Kenya plays a key role in financing sustainable development projects across Africa. With a strong credit rating, BII supports private sector growth through impactful investments.
The British International Investment offices and address connect global partners to regional initiatives, while leadership under the British International Investment CEO drives strategic expansion. Competitive British International Investment salaries reflect its global investment standards.
BlueOrchard Finance Ltd, a pioneer in impact investing, manages funds like the BlueOrchard Impact Credit Fund, BlueOrchard Natural Capital, and the BlueOrchard Microfinance Fund, which publishes an annual impact report.
The firm’s BlueOrchard portfolio and New Capital Fund Lux BlueOrchard Global Impact Credit Fund showcase its commitment to sustainability, with a growing BlueOrchard AuM supporting inclusive finance and climate resilience worldwide.
Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, climate change, and digital finance at Africa Digest News.
