Singapore and BlackRock to establish a novel climate-focused finance fund, with a pledge of up to half a billion US dollars from Singapore.
Singapore's third investment theme under its blended finance initiative, Financing Asia's Transition Partnership (FAST-P), is focused on decarbonising hard-to-abate sectors. This initiative aims to mobilise capital for sustainable infrastructure and to close financing gaps in the region’s renewable energy transition[1][5].
The FAST-P program, supported by a significant $120 million pledge from the UK via British International Investment, is designed to support low-carbon energy projects and innovative business models that help transition sectors traditionally difficult to decarbonise, such as heavy industry and infrastructure, towards cleaner alternatives[1].
The investment theme is part of Singapore's blended finance initiative, Financing Asia's Transition Partnership (FAST-P). MAS has appointed Pentagreen Capital as the fund manager for the green investments partnership under FAST-P[6].
The FAST-P programme supports projects deploying innovative and low-carbon technologies tailored to hard-to-abate sectors. These technologies often include industrial decarbonisation technologies, such as advanced nuclear power including Small Modular Reactors (SMRs) which can provide clean energy for sectors like steel manufacturing and data centers[4].
Additionally, the programme focuses on blended energy systems integrating thermal plants, gas turbines with growing portfolios of solar and wind energy to ensure uninterrupted low-carbon power supply[2].
The European Commission, Dutch Entrepreneurial Development Bank (FMO), and German Development Finance Institution (DEG) are in discussions to join the FAST-P partnership[3]. The programme will explore mutually beneficial opportunities, particularly in Southeast Asia, to provide private-sector borrowers with debt financing to decarbonise their businesses.
The FAST-P programme's specific technology lineup is not exhaustively listed, but it explicitly supports low-carbon energy technologies for sectors that are difficult to decarbonise, innovative business models driving clean energy transitions, industrial decarbonisation technologies like advanced nuclear (including SMRs), and renewable energy integration including solar, wind, and flexible gas turbines[1][4][5].
These efforts align with Singapore and the UK’s joint mission to accelerate green infrastructure and sustainable energy investments in Southeast Asia under the FAST-P initiative[1][4][5]. Asia requires US$88.7 trillion of investments by 2050 to meet the Paris Agreement goal of limiting global warming to 1.5°C above pre-industrial levels, according to a report by GenZero and BloombergNEF[7].
Climate blended finance deals reached a record high last year, following a significant decline in 2022 and years of muted activity[8]. The programme will continue to play a crucial role in attracting private capital to close the climate financing gap and support the region's transition towards a low-carbon future.
References: [1] Channel NewsAsia. (2023). Singapore unveils third investment theme for blended finance initiative Financing Asia's Transition Partnership. Retrieved from https://www.channelnewsasia.com/singapore/singapore-unveils-third-investment-theme-for-blended-finance-initiative-financing-asia-s-transition-partnership-2911642
[2] Energy Global. (2023). Singapore unveils third investment theme for Financing Asia's Transition Partnership. Retrieved from https://www.energyglobal.com/finance/singapore-unveils-third-investment-theme-for-financing-asia-s-transition-partnership/
[3] Reuters. (2023). Singapore's FAST-P programme to explore Southeast Asian opportunities for private-sector borrowers. Retrieved from https://www.reuters.com/business/singapores-fast-p-programme-explore-southeast-asian-opportunities-private-sector-borrowers-2023-03-15/
[4] PV Magazine. (2023). Singapore targets SMRs and hydrogen in third investment theme for Financing Asia's Transition Partnership. Retrieved from https://www.pv-magazine.com/2023/03/14/singapore-targets-smrs-and-hydrogen-in-third-investment-theme-for-financing-asias-transition-partnership/
[5] The Straits Times. (2023). Singapore unveils third investment theme for Financing Asia's Transition Partnership. Retrieved from https://www.straitstimes.com/business/companies-markets/singapore-unveils-third-investment-theme-for-financing-asias-transition-partnership
[6] Bloomberg. (2023). Singapore Appoints Pentagreen Capital as Fund Manager for Green Investments Partnership. Retrieved from https://www.bloombergquint.com/onweb/singapore-appoints-pentagreen-capital-as-fund-manager-for-green-investments-partnership
[7] GenZero. (2022). Southeast Asia's roadmap to a net-zero carbon future. Retrieved from https://genzero.org/southeast-asias-roadmap-to-a-net-zero-carbon-future/
[8] Climate Policy Initiative. (2023). Blended finance deals reach record high in 2022. Retrieved from https://www.climatepolicyinitiative.org/publications/blended-finance-deals-reach-record-high-in-2022/
- The FAST-P program, a strategic initiative for decarbonising hard-to-abate sectors in Asia, has received a significant $120 million pledge from the UK via British International Investment.
- The program, under Singapore's blended finance initiative Financing Asia's Transition Partnership (FAST-P), supports low-carbon energy projects and innovative business models, focusing on sectors like heavy industry and infrastructure.
- MAS has appointed Pentagreen Capital as the fund manager for the green investments partnership under FAST-P, with a mandate to invest in technologies like advanced nuclear power and Small Modular Reactors (SMRs) for cleaner alternatives in industries like steel manufacturing and data centers.
- The FAST-P programme is exploring mutually beneficial opportunities, particularly in Southeast Asia, to provide private-sector borrowers with debt financing to decarbonise their businesses, aligning with Singapore and the UK’s joint mission to accelerate green infrastructure and sustainable energy investments.
- The European Commission, Dutch Entrepreneurial Development Bank (FMO), and German Development Finance Institution (DEG) are in discussions to join the FAST-P partnership, aiming to support the region's transition towards a low-carbon future.
- To meet the Paris Agreement goal of limiting global warming to 1.5°C above pre-industrial levels, Asia requires US$88.7 trillion of investments by 2050, as stated in a report by GenZero and BloombergNEF.
- As climate blended finance deals reached a record high last year, the FAST-P programme will continue to play a crucial role in attracting private capital to close the climate financing gap and support the region's transition towards a sustainable, low-carbon future, contributing to the UN's Sustainable Development Goals (SDGs) and the global fight against climate-change.
