SINGAPORE, June 24 (Xinhua) -- A blended finance fund aimed at accelerating Asia's energy transition has achieved its first close with 250 million U.S. dollars in committed capital, the Monetary Authority of Singapore, Clifford Capital and the Private Infrastructure Development Group said on Wednesday in a statement.
The Energy Transition Acceleration Finance partnership will invest in energy transition projects through two approaches: a displacement strategy focused on grid modernization and infrastructure to accelerate the phase-out of fossil fuel-based power, and a replacement strategy targeting the substitution of coal-fired generation with lower-emissions energy sources.
Using blended finance and risk-sharing structures, the fund supports early-stage and higher-risk projects that typically face financing constraints, with the aim of crowding in commercial and institutional investors as projects mature.
The fund is part of Singapore's Financing Asia's Transition Partnership initiative, which seeks to mobilize both concessional and commercial capital into green and transition infrastructure across Asia, according to the statement.
Under the initiative, the Singapore government has pledged up to 500 million U.S. dollars in concessional capital, with the aim of catalyzing up to 5 billion U.S. dollars in investments to support Asia's green transition, the statement said. ■
