Australia has announced a US$50 million investment in Singapore’s Financing Asia’s Transition Partnership (FAST-P) to support sustainable infrastructure development and clean energy transition in Southeast Asia.

FAST-P aims to mobilise public, private, and philanthropic capital to support the region’s decarbonisation and climate resilience.

It is a blended finance initiative launched by the Monetary Authority of Singapore (MAS) at COP28 in 2023,

This investment will facilitate investment opportunities in clean energy and sustainable infrastructure projects across the region.

It is the first under Australia’s A$2 billion Southeast Asia Investment Financing Facility (SEAIFF) and a key recommendation of “Invested: Australia’s Southeast Asia Economic Strategy to 2040,”

It will also create commercial opportunities for Australian exporters and financial institutions, underscoring Australia’s commitment to the region’s economic development.

The Singapore government has committed up to US$500 million in concessional capital to FAST-P, matched dollar-for-dollar by contributions from partner countries and organisations.

Australia’s investment will be managed by Export Finance Australia (EFA) and deployed through the Green Investments partnership (GIP).

Pentagreen Capital, a sustainable infrastructure debt financing company established by HSBC and Temasek, has been selected to manage the GIP and aims to deploy US$1 billion to projects in various sectors.

This includes renewable energy, energy storage, electric vehicle infrastructure, sustainable transport, and water and waste management.

This collaboration reflects a shared commitment by Australia and Singapore to support Southeast Asia’s transition to a sustainable future.

John Hopkins, CEO and Managing Director, EFA said,

“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.”

Leong Sing Chiong, Deputy Managing Director (Markets and Development), MAS said,

“MAS welcomes Export Finance Australia as the latest partner to join our FAST-P initiative.

This latest partnership is a testament to the strong alignment of interest among Singapore, Australia, and other like-minded partners on the FAST-P platform to mobilise capital to support the region’s decarbonisation efforts.”

The article first appeared on Fintech News Singapore

Featured image credit: Edited from Freepik