To promote decarbonization in Asia, Singapore pledges $500 M in matching concessional funding
The Monetary Authority of Singapore (MAS) introduced the Financing Asia’s Transition Partnership (FAST-P) last year, and the Singaporean government has committed up to $500 million in concessional funding to support it.
FAST-P is a blended finance initiative that unites global public, private, and philanthropic partners to support Asia’s decarbonization and climate resilience, according to a statement released by MAS on Tuesday.
To match dollar-for-dollar concessional capital from other partners, such as other governments, multilateral development finance organizations, and philanthropies, the Singaporean government will commit up to $500 million in concessional capital.
With the help of this combined pool of concessional capital, up to $5 billion will be raised to support Asia’s green and transition financing needs by luring in commercial capital and other funding sources.
FAST-P has grown its network of partners since its inception in order to get ready for deployment and capital raising in 2025.
FAST-P’s original partners include Temasek, the International Finance Corporation (IFC), the Asian Development Bank (ADB), the Allied Climate Partners (ACP), and the Global Energy Alliance for People and Planet (GEAPP).
Discussions are underway regarding a possible partnership with FAST-P between AIA Group Limited (AIA), British International Investment (BII), the European Commission, Team Europe partners Dutch Entrepreneurial Development Bank (FMO), and the German Development Finance Institution (DEG), HSBC, Mitsubishi UFJ Financial Group (MUFG), and Nippon Export and Investment Insurance (NEXI).
In addition to the Energy Transition Acceleration Finance and Green Investments partnerships announced at COP28, FAST-P has also created a new Industrial Transformation infrastructure debt program and hired managers to carry out these three pillars.
The governments of Japan, New Zealand, and Germany praised the progress made thus far at COP29, including the creation of the Energy Transition Acceleration Finance (ETAF) partnership with Singapore and GEAPP.
Through this partnership, funds will be allocated to energy transition initiatives such as grid modernization and development, renewable energy, and early retirement of coal assets.
Clifford Capital, which has a wealth of experience financing infrastructure in Asia, is in talks with MAS to manage ETAF.
ACP, the IFC, MAS, and Temasek all support the Green Investments partnership.
Pentagreen Capital will oversee and allocate funds to financially viable green and sustainable infrastructure in Asia, including transportation, electric vehicle, waste and water management, and renewable energy and storage.
As founding shareholders of Pentagreen, Temasek and HSBC will provide funding to help the project. Team Europe partners FMO and DEG are in talks to become part of this partnership with the European Commission.
