The Asian Development Bank (ADB) is backing efforts by asset manager Keppel and Enterprise Singapore to seek out sustainability-related financing opportunities worth US$800mn across the Asia Pacific region.
Singapore-based Keppel, which specialises in critical infrastructure for clean energy and decarbonisation, announced on August 20 it had signed a memorandum of understanding with ADB and Enterprise Singapore (EnterpriseSG), a government agency that supports private sector growth.
The trio plan to explore projects related to decarbonising power generation, electric mobility, green construction and resource recovery from waste. Projects will be funded by blended finance facilities, including concessionary finance from ADB along with private sector investment.
By 2030, the total value of projects supported is expected to exceed US$800mn, Keppel says. Once complete they will abate an estimated 1 million tonnes of carbon dioxide per year.
“As the global push towards decarbonisation accelerates, the demand for financing to support clean energy transition and environmental projects across the Asia Pacific has never been greater,” says Cindy Lim, chief executive of Keppel’s infrastructure division.
Lim says Keppel will provide technical expertise and ability to mobilise external capital, with ADB offering concessional financing and EnterpriseSG bringing deal-matching and market access.
“Our partnership is uniquely positioned to drive impactful change and help the region achieve green growth,” she says.
Bhargav Dasgupta, ADB’s vice-president for market solutions, adds the development bank “will continue to partner with the private sector on innovative solutions to power the region’s low-carbon future”.
The trio will initially focus efforts on Southeast Asia, though EnterpriseSG plans to connect Keppel to partners in more than 35 overseas markets. The agency will also offer regulatory support and identify further financing resources across its network.
The announcement follows research by the International Energy Agency (IEA) that found development finance support must triple by the 2030s – accompanied by a huge mobilisation of private capital – if net-zero targets are to be met.
The IEA said last month that as much as US$100bn in concessional financing is required in emerging and developing economies by 2050, and that each dollar of concessional financing will have to be matched by US$7 in private capital – up from just 33 cents today.
Keppel says that examining blended finance opportunities will “further improve bankability” and encourage an uptick in private sector investment.
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