1. Distinguished guests, ladies and gentlemen, good morning. Welcome to the Singapore Pavilion on Finance Day.
2. Over the past three decades, the annual gatherings of COP have convened and rallied the world to align on common climate ambition and action.
a. Last year in Baku, Parties agreed on standards to operationalise Article 6.4 after six years. This was a pivotal milestone that lays the foundation for a high-integrity global carbon market.
b. On finance, Parties also agreed on a New Collective Quantified Goal of at least US$300 billion annually by 2035. This sets out the global ambition to mobilise greater financing for climate action, from both public and private sources.
3. With these key milestones, we have the opportunity to turn negotiated text into term sheets; and move from pledges to projects. And it is here that the ability to mobilise capital and channel it towards climate outcomes, is critical.
4. MAS remains committed to supporting global climate action. We are working with the financial sector to catalyse Asia’s transition towards a low-carbon and climate resilient future.
5. To do so, we have taken action across 3 dimensions:
a. First, developing credible financing solutions that are practicable and contextualised to regional needs.
b. Second, building capabilities in the financial sector to implement these solutions at scale.
c. And third, demonstrating the mobilisation of capital through innovative approaches.
d. So, Credibility, Capabilities and Capital. Let me take each of them in turn.
Developing Credible Financing Solutions
6. First, developing credible and practicable financing solutions. Two years ago, at COP28, we launched the Transition Credits Coalition (TRACTION) to study how high-integrity transition credits could address the issue of Asia’s legacy coal-fired power plants.
7. At COP30, TRACTION will release its final report. Over the past two years, we gathered feedback from TRACTION members and industry experts. The final report sets out practical insights, frameworks and solutions, to develop and structure high-integrity energy transition credit projects.
a. TRACTION’s report identifies that Asia holds substantial potential for generating high-integrity energy transition credits. It sets out solutions and identifies areas of further work.
b. The report also examines practical pathways to scale transition credits. This includes a suite of risk mitigation tools that can help crowd in capital.
c. MAS will share more about the report findings later this morning.
8. Since the convening of TRACTION, the energy transition credit landscape has continued to mature. Verra introduced the first transition credit methodology in May. Interest from buyers, financiers, and insurers are growing.
a. MAS has launched a Statement of Support for Energy Transition Credits that has garnered support from public and private sector partners. The Statement demonstrates the attractiveness of credible, market-based solutions that deliver real climate impact while addressing Asia’s development priorities.
b. Today, at least 20 organisations have joined the Statement. They include financial institutions with structuring expertise, corporates and sovereigns, including the Government of Singapore.
9. Progress will take time, given the region’s starting point and complex challenges ahead. But with the continued support and collaboration of the community, I am optimistic that we can scale new pathways to finance Asia’s coal-to-clean transition.
Building Capabilities to Scale Solutions
10. Let me turn now to building capabilities. Beyond energy transition credits, carbon markets can be a viable market solution for climate action.
a. We believe that financial institutions are not just participants, but key enablers in the carbon markets.
b. They play a catalytic role in aggregating demand, managing risk, and innovating financial products. They can contribute to shaping how carbon markets evolve in the years ahead.
11. However, even as carbon markets continue to develop, financial institutions may face near-term barriers in building capabilities in this area. Developing specialised expertise will take time, costs and sustained commitment.
12. To bridge this gap, MAS recently launched the Financial Sector Carbon Market Development Grant – part of a suite of Singapore Government initiatives to support the development of high-integrity carbon markets. The grant supports financial institutions in building carbon market capabilities, and developing innovative carbon credit solutions. This will help support a sustained investment by financial institutions in the development of credible carbon credit solutions.
13. This afternoon, our partners’ showcase will spotlight innovative financing structures that mobilise blended capital to early-stage carbon credit projects, and new risk mitigation and insurance approaches that enhance project bankability. These initiatives demonstrate how new capabilities can unlock new market mechanisms for financing climate action.
Mobilising Capital through Blended Finance
14. This brings me to the third C – mobilising capital. MAS is demonstrating how capital can be mobilised towards climate outcomes through the Financing Asia’s Transition Partnership (FAST-P), a blended finance initiative.
a. Launched at COP28, FAST-P currently comprises the Energy Transition Acceleration Finance (ETAF), Green Investment Partnership (GIP), and Industrial Transformation Programme (ITP). The Singapore Government has pledged US$500 million of concessional capital. This will be matched by other sources of concessional capital.
15. Earlier this week, the FAST-P office shared updates on its partnerships. Singapore’s Ambassador for Climate Action Ravi Menon was also appointed as Chairperson of FAST-P’s International Advisory Board. The International Advisory Board will provide strategic insight and help advocate for greater capital mobilisation to drive Asia’s transition.
16. The Green Investments Partnership has achieved its first close recently with a fund size of US$510 million.
a. Through active collaboration, GIP brought together global commercial and concessional investors including governments and philanthropies, and aligned differing investment mandates and risk appetites.
b. GIP has begun putting capital to work in Asia across projects, such as renewable energy and storage, electric vehicles, and water and waste management.
17. We continue to engage investors and work towards reaching first close of the next FAST-P partnership.
Conclusion
18. In conclusion, the building blocks of credibility, capabilities, and capital, come together to catalyse change and make a difference.
a. By developing credible financing solutions that are economically viable, socially acceptable, and addressing regionally relevant needs;
b. By building capabilities to execute and scale these solutions;
c. And by demonstrating successful capital mobilisation to set the flywheel turning for even greater capital flows.
19. We welcome like-minded partners to work with us, to develop and trial such solutions, to build deep capabilities, and above all, to demonstrate real world impact and investable outcomes.
20. Thank you and I wish you a fruitful day at the Singapore Pavilion and at COP30.
