Singapore has pledged up to US$500 million (669 million Singapore dollars) in support to boost Asia’s decarbonisation efforts, as revealed at the UN Climate Change Conference (COP29) in Azerbaijan. This considerable pledge intends to encourage climate finance in the region through concessional funding, which includes grants and loans delivered on favourable terms and at below-market rates. Singapore’s contribution will match concessional finance from partners such as governments, international banks, and philanthropic groups, reducing investment risks in green initiatives that are frequently deemed financially unsustainable.
This money is part of Singapore’s national blended finance project, Financing Asia’s Transition Partnership (Fast-P), which the Monetary Authority of Singapore (MAS) unveiled at COP28 in 2023 with the goal of mobilising up to US$5 billion. Fast-P will prioritise early coal phaseouts, renewable grid upgrades, and industrial decarbonisation. The initiative’s three pillars are energy transition, green investments, and industrial transformation, which target areas where high capital costs and long payback times discourage private investment.
Minister Grace Fu and Climate Action Ambassador Ravi Menon announced the changes, emphasising Fast-P’s role in attracting business investments to help Asia’s green transition.
