Australia has announced it will invest US$50 million in Singapore’s Asia Transition Partnership (FAST-P) to support sustainable infrastructure development and clean energy transition in Southeast Asia.
Fast P It aims to mobilize public, private and philanthropic funding to support regional decarbonization and climate resilience.
This is a blended finance initiative launched by the Monetary Authority of Singapore (MAS) at COP28 in 2023.
This investment will foster investment opportunities in clean energy and sustainable infrastructure projects across the region.
This is the first under Australia’s A$2 billion Southeast Asia Investment Finance Facility (SEAIFF) and is also a key recommendation of Invested: Australia’s Southeast Asia Economic Strategy to 2040.
It will also create commercial opportunities for Australian exporters and financial institutions, highlighting Australia’s commitment to regional economic development.
The Government of Singapore has committed up to US$500 million in concessional funding to FAST-P, with contributions from partner countries and organizations.
Australian investments are managed by Export Finance Australia (EFA) and deployed through the Green Investment Partnership (GIP).
Pentagreen Capital, a sustainable infrastructure debt financing company set up by HSBC and Temasek, has been selected to manage GIP and aims to inject US$1 billion into projects across a range of sectors.
This includes renewable energy, energy storage, electric vehicle infrastructure, sustainable transport, and water and waste management.
This collaboration reflects Australia and Singapore’s shared commitment to supporting Southeast Asia’s transition to a sustainable future.
John Hopkins, CEO and Managing Director of EFA, said:
“Through initiatives like FAST-P, we are not just funding projects, we are also building the foundations for long-term, mutually beneficial relationships in the region, including with the Singapore government. I am.
At Export Finance Australia, we believe there is significant potential in Southeast Asia’s energy transition and can connect Australian investors and businesses with the region’s opportunities. ”
Mr Leong Sing Chiong, Deputy Managing Director (Markets and Development) of MAS, said:
“MAS welcomes Export Finance Australia as the latest partner to join the FAST-P initiative.
This latest partnership demonstrates the strong alignment of interest between Singapore, Australia and other like-minded partners in the FAST-P platform to mobilize finance to support regional decarbonization efforts. I am. ”
Featured image credit: Edited from freepic
