Leading financial entities collaborate to address climate finance gaps and boost the bankability of green projects in Southeast Asia through a groundbreaking green investments partnership

Allied Climate Partners (ACP), International Finance Corporation (IFC), the Monetary Authority of Singapore (MAS), and Temasek unveiled plans to establish a transformative green investments partnership. The initiative aims to tackle the climate finance gaps prevalent in Asia, focusing initially on Southeast Asia.

Developing Asia faces a substantial challenge, requiring $1.7 trillion in annual infrastructure investments until 2030 to sustain growth while aligning with climate goals. Recognizing the struggle of many green infrastructure projects to attract commercial financing, especially during development and construction, ACP, IFC, MAS, and Temasek have signed a Memorandum of Understanding (MOU).

The collaboration seeks to bridge sustainable infrastructure financing gaps in the region using blended finance. This involves combining concessional capital from philanthropic and public sectors with private capital to support projects in various sectors, including renewable energy, electric vehicle infrastructure, sustainable transport, and water and waste management. The MOU was formalized at the 28th Conference of the Parties (COP28) to the United Nations Framework Convention on Climate Change.

In addition to environmental and social goals, the partnership will provide crucial support for project bankability, including advisory and structuring assistance, technical support, and sustainability management. The approach will adhere to global best practice standards and impact guidelines.

ACP will contribute origination and technical support, IFC will provide pre-investment advisory and co-development expertise, MAS will leverage its financial networks, and Temasek will use its portfolio companies and ecosystem for origination and investment opportunities.

The collaboration also aims to catalyze additional financing sources by considering opportunities for concessional and commercial capital providers. ACP, IFC, MAS, and Temasek encourage support from public and private sectors to create an enabling environment for green and sustainable investments in the region.

Source – ACP, IFC, MAS and Tamasek