The Australian government has approved a US$50 million ($67.24 million) investment into the Green Investments partnership (GIP) under Singapore’s Financing Asia’s Transition Partnership (Fast-P) initiative, the Monetary Authority of Singapore (MAS) announced on Dec 3.
The investment will support clean energy transition and sustainable infrastructure development across Southeast Asia, according to MAS, which launched Fast-P at COP28 in 2023.
Australia’s investment, administered by Export Finance Australia (EFA), will help facilitate investment opportunities in clean energy and sustainable infrastructure projects across Southeast Asia and create commercial opportunities for Australian exporters and financial institutions, says MAS.
This is the first investment under the Australian government’s A$2 billion ($1.75 billion) Southeast Asia Investment Financing Facility (SEAIFF) — a key recommendation of the government's plan, titled “Invested: Australia’s Southeast Asia Economic Strategy to 2040”.
“This highlights Australia’s commitment to practical action and reinforces their role as a committed and reliable partner for the region,” says Singapore’s financial regulator and central bank.
Fast-P is a blended finance initiative that brings together public, private and philanthropic partners to support Asia’s decarbonisation and climate resilience. At COP29 last month, the Singapore government pledged up to US$500 million as concessional capital, to match dollar-for-dollar concessional capital from other partners, including other governments, multilateral development finance institutions and philanthropies.
Australia’s investment, administered by EFA, will join the consortium of partners mentioned in a Nov 12 announcement by Pentagreen Capital, the sustainable infrastructure debt financing company established by HSBC and Temasek.
Pentagreen Capital will manage Fast-P’s GIP and deploy capital to projects in sectors including renewable energy and storage, electric vehicle infrastructure, sustainable transport, and water and waste management, as well as those from other green infrastructure sectors.
John Hopkins, CEO and managing director, EFA, says: “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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Leong Sing Chiong, deputy managing director (markets and development) at MAS, says: “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.”
Marat Zapparov, CEO of Pentagreen Capital, says multilateral efforts can “significantly” accelerate climate infrastructure investment in Southeast Asia. “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.”
