Asia's Climate Finance Deficit Targeted for Resolution with SG$510 Million Investment by Singapore's FAST-P Organization

The Green Investments Partnership (GIP), a fund under Singapore's Financial Access to Sustainable Transformation (FAST-P) programme, has reached a significant milestone. The partnership, which pools concessional and commercial capital from governments, multilateral institutions, philanthropies, and private investors, has secured commitments totalling US$510 million.

Launched in 2023, FAST-P was created to combine public, private, and philanthropic capital to help close Asia's climate finance gap. One of the investors in the GIP is the Monetary Authority of Singapore (MAS), which also invests in the Industrial Transformation infrastructure debt programme, focusing on decarbonisation projects in hard-to-abate sectors.

The GIP will support green and sustainable infrastructure projects across Southeast and South Asia. It will target renewable energy, storage, electric vehicle infrastructure, sustainable transport, water, waste management, and other areas vital to the region's energy transition. Notable investors include Temasek, HSBC, British International Investment, Dutch development bank FMO, International Finance Corporation, The European Commission, The Australian Government through Export Finance Australia, and Bank of the Philippine Islands.

The partners of the Industrial Transformation infrastructure debt program within FAST-P's financing program include MAS, HSBC, Temasek, the Australian government, and Pentagreen Capital, which is managed jointly by HSBC and Temasek. This program is part of FAST-P's strategy to decarbonize hard-to-abate sectors by mobilizing blended finance for green infrastructure projects in Southeast Asia.

The GIP will provide debt financing for marginally bankable projects that often face difficulties securing funding due to risks in development and construction. Gillian Tan, Assistant Managing Director (Development & International) and Chief Sustainability Officer of MAS, stated that the first close of the Green Investments Partnership is an important milestone for FAST-P. Munib Madni, CEO of FAST-P Office, congratulated all partners for achieving the milestone and expressed gratitude for their commitment.

MAS welcomes participation by a broader community of partners in FAST-P to mobilize and scale blended finance for Asia's transition. The FAST-P Office looks forward to continuing the work with Pentagreen, partners in other pillars, and the broader ecosystem of commercial and concessional investors to promote blended finance solutions for sustainable infrastructure in the region. The Energy Transition Acceleration Finance partnership, which supports renewable energy, grid modernisation, and the early retirement of coal assets, is another initiative under FAST-P.

The GIP's strong pipeline of deals indicates a promising future for the fund. The partnership's success underscores the growing global recognition of the need for sustainable infrastructure and the potential of blended finance to address this need. As Asia continues to develop, initiatives like FAST-P and the GIP will play a crucial role in ensuring that development is sustainable and aligned with the global fight against climate change.

Asia's Climate Finance Deficit Targeted for Resolution with SG$510 Million Investment by Singapore's FAST-P Organization