Singapore has pledged up to US$500 million in concessional funding to support decarbonisation efforts in Asia at the 29th United Nations Climate Change Conference (COP29) today.

This funding will support the Financing Asia’s Transition Partnership (FAST-P), a blended finance initiative launched by the Monetary Authority of Singapore (MAS) in 2023.

The investment will be used to match, dollar-for-dollar, concessional capital from other governments, international organisations, and philanthropies to attract commercial investment in green and transition financing across Asia.

FAST-P aims to raise a total of US$5 billion to support projects focused on renewable energy, grid modernisation, early retirement of coal assets, and sustainable infrastructure development.

Since its launch, FAST-P has garnered support from various partners, including the Asian Development Bank, Global Energy Alliance for People and Planet, and Temasek.

AIA Group Limited, British International Investment, the European Commission and Team Europe partners Dutch Entrepreneurial Development Bank (FMO) and the German Development Finance Institution (DEG), HSBC, Mitsubishi UFJ Financial Group, and Nippon Export and Investment Insurance (NEXI) are in discussions for potential collaboration.

The partnership has also established programmes focused on energy transition (ETAF), green investments, and industrial transformation.

At COP29, Germany, Japan, and New Zealand expressed their support for FAST-P’s progress.

The initiative is actively working with organisations like Clifford Capital, which has extensive experience with infrastructure financing in Asia, to manage ETAF and deploy funds for projects across Asia.

Pentagreen Capital, a sustainable infrastructure debt financing entity, will manage and deploy capital for the Green Investments partnership.

The newly announced Industrial Transformation programme will focus on providing debt financing to companies seeking to decarbonise their operations, including those in challenging sectors.

This programme has attracted interest from major financial institutions like AIA, BlackRock, IFC, MUFG, and NEXI.

The Monetary Authority of Singapore emphasised its commitment to collaborating with global partners to mobilise capital and accelerate Asia’s transition towards a sustainable future.

Featured image credit: Edited from Freepik