BlackRock and the Monetary Authority of Singapore (MAS), together with other partners, will develop a new blended financial debt program under MAS that will focus on industrial transformation projects. Funding the Asian Transition Partnership (FAST-P) initiative.
Partners including the International Finance Corporation (IFC), Mitsubishi UFJ Financial Group (MUFG), Nippon Export and Investment Insurance (NEXI), and AIA Group (AIA) announced cooperation at COP29 and signed a letter of intent (SOI) .
This builds on the broader FAST-P initiative launched by MAS at COP28 to mobilize finance for the region’s transition to a low-carbon economy.
The program aims to mobilize finance for decarbonization projects in Southeast Asia by expanding access to global investors looking to fund these efforts.
Explore debt financing solutions for projects in hard-to-reach sectors, technology solutions for low-carbon transformation, and other industrial opportunities.
This initiative was undertaken in response to the growing need for investment in clean energy in Southeast Asia.
According to IFC and the International Energy Agency, annual investment in clean energy will need to increase dramatically from USD 30 billion in 2022 to USD 208 billion to USD 244 billion annually by the early 2030s.
FAST-P seeks to mobilize up to US$5 billion from public, private and philanthropic partners to fund this transition.
Mark Wiedman, head of global client business at BlackRock, said:
“Emerging markets in Southeast Asia face hurdles in financing capital-intensive projects such as decarbonization.
BlackRock brings our blended finance and transition investment expertise to public-private partnerships like FAST-P, benefiting our clients and the societies in which we invest. ”
Mr Leong Sing Chiong, Deputy Managing Director of Market Development at MAS, said:
“For Asia to move to net zero, it will need to gradually decarbonize economic sectors, including carbon-intensive and hard-to-abate sectors. Companies and sectors looking to adopt cleaner technologies and processes Funding is a key enabler.
The signing of SOI is an important step in accelerating the transition in Asia, and we are pleased to welcome BlackRock, IFC, MUFG, NEXI, and AIA as FAST-P partners. ”
Featured image credit: Edited from freepic
