Singapore pledged up to US$500 million in concessional financing to support decarbonization efforts in Asia at the 29th United Nations Climate Change Conference (COP29) held today.
The funding will support the Financing Asia Transition Partnership (FAST-P), a blended finance initiative. launched To be determined by the Monetary Authority of Singapore (MAS) in 2023.
This investment will be used to attract commercial investment in green and transition financing across Asia, leveraging dollar-for-dollar concessional capital from other governments, international organizations and philanthropies. .
FAST-P aims to raise a total of US$5 billion to support projects focused on renewable energy, grid modernization, early retirement of coal assets, and sustainable infrastructure development .
Since its launch, FAST-P has garnered support from a variety of partners including the Asian Development Bank, the Global Energy Alliance for People and Planet, and Temasek.
AIA Group Limited, British International Investment, the European Commission and Team Europe partners the Netherlands Entrepreneurs Development Bank (FMO), German Development Bank (DEG), HSBC, Mitsubishi UFJ Financial Group and Nippon Export and Investment Insurance (NEXI). I’m participating. Discussion about collaboration possibilities.
The partnership also established programs focused on energy transition (ETAF), green investment and industrial transformation.
At COP29, Germany, Japan and New Zealand expressed support for progress on FAST-P.
The initiative is actively working with organizations like Clifford Capital, which has extensive experience in infrastructure financing in Asia, to manage ETAF and deploy capital to projects across Asia.
Pentagreen Capital, a sustainable infrastructure debt financing vehicle, manages and deploys the capital of the Green Investment Partnership.
The newly announced Industry Transformation Program will focus on providing debt financing to companies looking to decarbonise, including those in difficult sectors.
The program has attracted interest from major financial institutions including AIA, BlackRock, IFC, MUFG, and NEXI.
of Monetary Authority of Singapore underlined its commitment to working with global partners to mobilize capital and accelerate Asia’s transition towards a sustainable future.
Featured image credit: Edited from freepic
