MAS Launches S$5 Million Grant to Fund Scalable Blended Finance Solutions

MAS Launches S$5 Million Grant to Fund Scalable Blended Finance Solutions

by October 5, 2022

The Monetary Authority of Singapore (MAS) and Convergence Blended Finance, a global network for blended finance, announced the launch of a S$5 million Asia Climate Solutions Design Grant at the inaugural Transition Finance Towards Net Zero (TFNZ) conference yesterday.

Hosted by MAS together with knowledge partners McKinsey & Company and Convergence Blended Finance, and supported by the Glasgow Financial Alliance for Net Zero (GFANZ), the conference provides a platform to galvanise key public and private sector stakeholders to mobilise capital at scale to help economies and corporates decarbonise.

The conference focused on the theme of scaling “blended finance” which involves the use of concessional and catalytic capital to draw in private capital at commercial rates for financing projects with sustainable outcomes.

The S$5 million grant will help provide early-stage grant funding for proof of concept and feasibility studies on innovative and scalable blended finance solutions to fund sustainability projects.

It will also be channeled to mobilise capital into high impact target sectors that are significantly under-capitalised in Asia.

This includes early-stage climate adaptation and mitigation technology, clean energy access, sustainable transport, sustainable cities and infrastructure, sustainable agriculture, and nature-based solutions.

The conference also saw the launch of an initiative by the GFANZ Asia-Pacific (APAC) Network to develop guidance for financial institutions on how they can facilitate the managed phase-out of coal power generation in the Asia Pacific.

This guidance aims to provide the clarity that is needed to help drive capital into such projects.

The Asian Development Bank and MAS will participate in this initiative and financial institutions interested in contributing to this effort are invited to express their interest.

The next edition of the TFNZ conference will be held in 2023.

Ravi Menon

Ravi Menon

Ravi Menon, Managing Director, MAS said,

“Bringing together public and private capital in a synergistic way is critical to Asia’s decarbonisation efforts. MAS has been working with like-minded partners to facilitate and scale such blended finance solutions.

 

This conference is part of that effort and we are thankful to the many thought leaders, policy makers, and practitioners who participated and generously shared their insights and perspectives.”

Joan Larrea

Joan Larrea

Joan Larrea, CEO, Convergence said,

“Blended finance, through strategic use of catalytic funding, can provide critical de-risking for private sector investment and improve project bankability, and play an impactful role in addressing the financing gap for the net zero transition.

 

We want to actively promote the creation of more blended finance solutions and are excited to see concrete efforts to grow the blended finance ecosystem in this region.”