Temasek’s S$100 million pledge underscores the importance of blended finance initiatives in driving climate action across Asia.
Singapore’s state investor, Temasek, has announced a S$100 million pledge aimed at addressing the growing challenges posed by climate change. The initiative, named the Concessional Capital for Climate Action (CCCA), was introduced by Temasek Chairman Lim Boon Heng during the company’s 50th-anniversary celebration. This move marks a significant shift in Temasek’s approach to philanthropy, focusing on climate resilience and sustainable living.
RELEVANT SUSTAINABLE GOALS
Bridging the Climate Financing Gap
The Concessional Capital for Climate Action seeks to close the climate financing gap, particularly in Asia, where many projects struggle to secure funding. The CCCA will offer flexible and favorable financing options for initiatives that promote biodiversity, climate resilience, and other environmentally sustainable practices.
“At Temasek, we have been investing in sustainability across the years, and have deployed commercial capital to scale innovation for the green transition,” Lim Boon Heng stated. He emphasized the importance of concessional capital in catalyzing financing for emerging markets and developing economies, where the climate action needs are often most urgent.
A New Path Forward for Climate Resilience
This S$100 million fund is sourced from Temasek’s community gifts and represents a significant expansion of the company’s commitment to environmental sustainability. The initiative reflects Temasek’s growing focus on long-term environmental projects, moving beyond traditional grants to become a key player in the global green transition.
In tandem with the Monetary Authority of Singapore’s Financing Asia’s Transition Partnership (FAST-P), the CCCA aims to align long-term investors, philanthropic entities, and commercial stakeholders to collectively address climate financing needs. Lim Boon Heng remarked, “Through the Concessional Capital for Climate Action, we hope our community gift can contribute to concessional capital emerging as an asset class, to mobilize the varied forms of capital necessary to bridge the climate financing gap.”
Temasek’s S$100 million pledge underscores the importance of blended finance initiatives in driving climate action across Asia. By focusing on concessional capital, the company is creating a model for sustainable investments that align with global environmental goals. As the climate crisis intensifies, Temasek’s commitment serves as a critical example of how institutions can lead the charge in mobilizing resources for the planet’s future.
Lead image courtesy of Shih-Wei from Getty Images Pro (Aerial view of Singapore Business district and city at twilight in Singapore, Asia)
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