Australia Approves US$50m for Decarbonisation in Singapore
FAST-P brings together governments, private companies, and philanthropies to finance green transition projects in Asia.
The investment also seeks to build a strong economic partnership between the two countries in green energy projects.
The governments of Australia and Singapore are partnering to support sustainable infrastructure and decarbonisation in Southeast Asia.
The Green Investments Partnership (GIP), part of Singapore's Financing Asia’s Transition Partnership (FAST-P) initiative, has received a US$50 million investment from the Australian government. The proceeds will support the shift to green energy and develop sustainable infrastructure across Southeast Asia. This agreement was reached during the COP28 climate talks in 2023.
The agreement will open doors for Australian businesses and financial organisations to tap the Southeast market. Australia's US$50 million investment is part of its US$2 billion Southeast Asia Investment Financing Facility (SEAIFF) to strengthen economic ties with Southeast Asia in sustainable projects.
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FAST-P consists of public, private, and philanthropic funds to support clean energy and climate resilience projects in Asia.
The GIP will be monitored and managed by Pentagreen Capital, which will deploy the capital raised from the FAST-P initiative. It focuses on sustainable infrastructure projects, including renewable energy, electric vehicles, sustainable transport, and water and waste management.
Marat Zapparov, Chief Executive Officer, Pentagreen Capital, said: “Multilateral efforts can significantly accelerate climate infrastructure investment in Southeast Asia, as like-minded partners across public, private and philanthropic sectors come together to scale our commitment.
"We are delighted the Australian Government is joining the Green Investments partnership to advance our shared objective of catalysing high quality infrastructure development in our region. Pentagreen Capital is looking forward to drawing on the deep expertise in the infrastructure sector offered by Australia to unlock capital flows for the benefit of our clients, partners and neighbours in the region.”
Export Finance Australia (EFA) administers the Australian government's participation in GIP, aiming to create long-term economic ties between the two governments, particularly in green energy and other sustainable projects.
John Hopkins, CEO and Managing Director, EFA, said: “Our support for projects in Southeast Asia reflects Australia’s commitment to supporting the clean energy transition and infrastructure development in the region, as well as fostering economic partnerships that benefit both the region and Australia.
"Through initiatives like FAST-P, we are not just financing projects – we are building a foundation for long term, mutually beneficial relationships in the region, including with the Singapore Government. At Export Finance Australia, we see significant potential in Southeast Asia’s energy transition and connecting Australian investors and businesses with opportunities in the region.”
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Source: EFA
