At the UN climate summit (COP29) in Baku, Azerbaija, Singapore announced a landmark commitment of US$500 million in concessional funding, to propel decarbonization efforts across Asia, reinforcing its climate finance perseverance.

This funding pledge by Singapore’s minister for sustainability and the environment, Grace Fu, aims to galvanize up to US$5 billion in green financing to accelerate Asia’s ongoing transition to sustainable energy and infrastructure.

The funds will bolster the Financing Asia’s Transition Partnership (FAST-P), an initiative led by the Monetary Authority of Singapore that blends public, private and philanthropic capital to amplify green investment in Asia’s hard-to-abate sectors and energy transition projects.

By pledging a dollar-for-dollar match alongside contributions from other governments, development finance institutions and foundations, Singapore is seeking to unlock additional private sector investment and deliver impact across a range of transformative projects, from renewable energy and grid modernization to industrial decarbonization.

Since its launch at COP28, FAST-P has attracted a growing coalition of strategic partners, including the Asian Development Bank, the Global Energy Alliance for People and Planet, and Singapore sovereign fund Temasek. Additional entities, such as AIA, British International Investment and the European Commission, are currently said to be in discussions to join.

The programme’s innovative financing structure is poised to meet the unique demands of sustainable projects, with financing mechanisms that mitigate risk for private investors and emphasize long-term viability.

Singapore’s initiative is further supported by two additional pillars under FAST-P: the Green Investments Partnership, which targets infrastructure in electric vehicle production, water management and waste-to-energy projects; and the newly introduced Industrial Transformation Infrastructure Debt Programme, which will extend debt financing to decarbonization projects across sectors that traditionally face challenges in transitioning to green.