Global investment company Temasek, headquartered in Singapore will be allocating S$100 million (US$77.6 million) as Concessional Capital for Climate Action (CCCA). The announcement was made by Lim Boon Heng, the company’s chairman, during his speech at Temasek’s 50th anniversary dinner on 23 September 2024.
In light of the ongoing climate crisis, Lim emphasised the need for increased financial resources, particularly for developing countries facing a doubling of the climate financing gap by 2030. He highlighted that Asia, home to over half the world’s population and carbon emissions, is pivotal in the global fight for net zero.
The CCCA aims to support climate initiatives by offering flexible financing solutions to overcome market barriers, thus facilitating the green transition towards the 1.5 degrees Celsius goal. Funded by Temasek’s community gifts, the initiative seeks to catalyse additional investment in marginally bankable projects, such as clean infrastructure in Asia.
The effectiveness of the CCCA will be evaluated based on its capacity to generate positive outcomes in climate action, including efforts to prevent, mitigate, and adapt to climate change impacts; foster biodiversity and promote harmony between people and nature; and encourage sustainable living practices that support responsible resource use for improved human and environmental health. This includes projects focused on marginally bankable clean infrastructure in Asia.
The CCCA represents an innovative approach to Temasek’s use of philanthropic capital, moving beyond traditional grant-making and reinforcing its commitment to the climate agenda. This initiative marks the first time Temasek is contributing concessional capital to support the green transition. Through the CCCA, Temasek aims to attract additional forms of capital within the wider climate ecosystem to finance marginally bankable projects, thereby enhancing the effectiveness of its philanthropic efforts to protect the planet.
Lim Boon Heng said, “Through the Concessional Capital for Climate Action, we hope our community gift can contribute to concessional capital emerging as an asset class, to mobilise the varied forms of capital necessary to bridge the climate financing gap. We look forward to partnering other like-minded organisations to advance progress on this front, so that we can Do Well, Do Right, and Do Good together – for the prosperity of current and future generations.”