Global investment manager BlackRock, the Monetary Authority of Singapore (MAS) and the International Finance Corporation (IFC) have united to launch a large-scale industrial transformation debt initiative, under the MAS’ FAST-P (Financing Asia’s Transition Partnership) framework, to accelerate decarbonization efforts across Southeast Asia. 

The new partnership, formalized in a statement of intent at COP29 in Baku, Azerbaijan, also includes major financial entities Mitsubishi UFJ Financial Group, Nippon Export and Investment Insurance, and AIA Group.

The initiative, aimed at mobilizing private and public capital for stubborn hard-to-abate sectors, will seek to meet Southeast Asia’s funding gap for low-carbon projects, and signals a pivotal shift toward decarbonization investments that aim to reshape Southeast Asia’s energy landscape.

Singapore, through the MAS, continues to use its financial leadership to encourage sustainable investment in Asia, following the establishment of the US$5 billion FAST-P blended finance fund announced at COP28.

This project focuses on debt financing opportunities that cater to Southeast Asia’s need for large-scale decarbonization projects. BlackRock, meanwhile, which manages US$170 billion in infrastructure assets, will bring its expertise in infrastructure finance to bolster this public-private initiative.

The initiative marks a key step in the region’s path toward net-zero emissions, says MAS deputy managing director Leong Sing Chiong, by making sustainable finance accessible to businesses across Asia, particularly in high-emission sectors.

A 2023 report by the IFC and the International Energy Agency underscored the importance of decarbonizing the region, highlighting that Southeast Asia must elevate its clean energy investments from US$30 billion annually to as much as US$244 billion by the 2030s to meet climate targets.

This latest collaboration signals a pivotal shift towards decarbonization investments that aim to reshape Southeast Asia’s energy landscape, supported by Singapore’s leading role in climate finance and a growing commitment to low-carbon development.

“The stakes are high in Southeast Asia, where climate change impacts environmental stability, economic growth and human development,” states Riccardo Puliti, the IFC’s regional vice-president for Asia-Pacific. “This partnership will channel critical financing into the countries and projects that need it most.”