The Australian Government has announced a US$50 million investment into the Green Investments Partnership (GIP) under Singapore’s Financing Asia’s Transition Partnership (FAST-P) initiative. The funding aims to support clean energy transitions and the development of sustainable infrastructure across Southeast Asia. FAST-P was launched by the Monetary Authority of Singapore (MAS) during the 28th United Nations Climate Change Conference (COP28) in 2023.
Administered by Export Finance Australia (EFA), this investment marks the first allocation under the Australian Government’s A$2 billion Southeast Asia Investment Financing Facility (SEAIFF). SEAIFF is a flagship program stemming from ‘Invested: Australia’s Southeast Asia Economic Strategy to 2040’, and the initiative underlines Australia’s commitment to fostering economic growth and environmental sustainability in the region. The move also creates commercial opportunities for Australian exporters and financial institutions, reinforcing the nation’s reputation as a reliable partner for Southeast Asia.
FAST-P, a blended finance initiative, unites international public, private, and philanthropic partners to drive Asia’s decarbonisation and enhance climate resilience. The Singapore Government has pledged up to US$500 million in concessional capital, matched dollar-for-dollar by contributions from other governments, multilateral development banks, and philanthropies. This pooled capital is designed to attract commercial investments to accelerate Asia’s green energy transition.
Australia’s investment joins a consortium managed by Pentagreen Capital, a sustainable infrastructure financing firm established by HSBC and Temasek. The GIP will channel funds into projects focusing on renewable energy and storage, electric vehicle infrastructure, sustainable transport, and water and waste management, among other green infrastructure initiatives.
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.”
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.”
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.”
