To support clean energy transition and sustainable infrastructure development across Southeast Asia, the Monetary Authority of Singapore (“MAS“) announced on 3 December 2024 that the Australian Government will invest US$50 million into the Green Investments partnership (“GIP“) under Singapore’s Financing Asia’s Transition Partnership (“FAST-P“) initiative.
FAST-P
FAST-P was launched by MAS at the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28) in December 2023. FAST-P is a blended finance initiative for like-minded international public, private and philanthropic partners to support Asia’s decarbonisation and climate resilience.
Under FAST-P, the Singapore Government will commit up to US$500 million in concessional capital, matching contributions from other partners such as governments, multilateral development finance institutions, and philanthropies. This combined fund aims to attract commercial capital and other financial sources to support Asia’s transition to green energy.
GIP
Australia’s investment in the GIP under FAST-P, administered by Export Finance Australia, will enable investment opportunities in clean energy and sustainable infrastructure projects across Southeast Asia and create commercial opportunities for Australian exporters and financial institutions.
The deployment of capital under FAST-P’s GIP will be to projects in sectors such as renewable energy and storage, electric vehicle infrastructure, sustainable transport, and water and waste management, as well as those other green infrastructure sectors.
Moving Forward
The initiative aims to leverage the expertise and resources of both countries to mobilise private capital and facilitate knowledge sharing and capacity building in the region.
We expect blended finance to be an increasingly important component of project financing, especially for projects with a higher risk profile or with greater uncertainty due to technological advances.
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