Asian Development Bank (ADB), Global Energy Alliance for People and Planet (GEAPP), and the Monetary Authority of Singapore (MAS) announce a strategic partnership to accelerate energy transition in Asia
Dubai, 5 December 2023 – The Asian Development Bank (ADB), Global Energy Alliance for People and Planet (GEAPP), and the Monetary Authority of Singapore (MAS) have revealed plans to establish a collaborative blended finance partnership aimed at expediting large-scale energy transition initiatives in Asia.
With economic growth, demographic expansion, and increased urbanization driving a surge in energy demand across Asia, 85% of which is currently met through fossil fuels, there is a critical need to reduce emissions while meeting development goals. In response, ADB, GEAPP, and MAS have signed a Memorandum of Understanding (MOU) at the 28th Conference of the Parties (COP28) to the United Nations Framework Convention on Climate Change.
The MOU outlines the establishment of an energy transition acceleration finance partnership to leverage concessional capital from philanthropic and public sectors, mitigate project risks, and attract private capital globally. The partnership aims to support projects such as the early phaseout of coal assets, replacement with renewable energy, and decarbonization initiatives in hard-to-abate sectors.
The collaboration between ADB, GEAPP, and MAS will focus on developing a robust pipeline of opportunities and implementing innovative financing structures to drive decarbonization efforts in Asia. Additionally, the partners will explore the use of high-integrity transition carbon credits to enhance the commercial viability and sustainability of transitioning from coal to renewable energy.
The partnership, targeting a fundraising goal of up to US$2 billion in concessional and commercial capital, will benefit from ADB’s extensive network in the region, GEAPP’s philanthropic capital and experience in energy transition, and MAS’s role in mobilizing stakeholders within Singapore’s financing ecosystem.
Source – ADB, GEAPP & MAS