Allied Climate Partners, International Finance Corporation, the Monetary Authority of Singapore and Temasek Establish a Green Investments Partnership in Asia

The Monetary Authority of Singapore (MAS) has issued a statement to inform of a new collaboration agreement between Allied Climate Partners (ACP), International Finance Corporation (IFC), Temasek, and the Authority itself to address the financing gap in sustainable projects in Asia, particularly in Southeast Asia. Currently, an estimated US$1.7 trillion annually is needed to ensure sustainable growth and the achievement of global climate goals. However, many projects struggle to attract the necessary financing, especially during project development and construction phases.
The noted parties have thus signed an MoU in which they confirm their commitment to tackle these challenges through blended finance. This involves combining concessional capital from philanthropic and public sectors with private capital to support green projects. The initial focus will be on sectors like renewable energy, electric vehicles, sustainable transport, water, and waste management in Southeast Asia.
The partnership thereby prioritizes environmental and social objectives, including the reduction of carbon emissions, the creation of employment opportunities, the improvement of livelihoods, and the enhancement of community resilience against climate change impacts. Additionally, they’ll provide support in advisory services, project structuring, technical assistance, and impact management following global best practices and standards. Each party will be responsible for different tasks with MAS leveraging its financial networks and sustainable finance expertise and Temasek utilizing its portfolio companies network and partnerships for possible investment opportunities.
To conclude, MAS notes that ACP, IFC, Temasek, and MAS itself invite stakeholders from both public and private sectors to create an enabling environment that supports the „bankability“ of green and sustainable investments in the region.