Today at COP28, the Asian Development Bank (ADB), Global Energy Alliance for People and Planet (GEAPP) and the Monetary Authority of Singapore (MAS) have announced plans to establish a blended finance partnership to accelerate energy transition in Asia.

The three companies signed an agreement to mobilise $2bn in capital from the philanthropic and public sectors, de-risk projects, as well as seek private capital from around the globe to finance energy transition projects in Asia.

Projects include the early phase-out of coal assets to be replaced with renewable energy, and decarbonisation projects in hard-to-abate sectors, a statement said.

The partners will develop a pipeline of opportunities and deploy scalable financing structures throughout Asia. They will also use transition carbon credits to improve the commercial viability and sustainability of replacing coal assets with renewable energy.

ADB will provide origination, transaction and technical support through its presence in countries across the region. GEAPP will contribute philanthropic capital, its energy transition experience, and a coalition of committed partners, whilst MAS will mobilise key stakeholders in Singapore’s finance sector.

This comes as research reveals 85% of Asia’s energy consumption is from fossil fuels, with economic growth, demographic expansion and increased urbanisation driving energy demand.

ADB president, Masatsugu Asakawa (pictured), said: “Time is running out to make a meaningful impact on climate change and it is clear that not enough is being done to curtail the most polluting sources of greenhouse gas emissions.

“This financing partnership with MAS and GEAPP – two leading, like-minded partners – is a significant step towards attracting the requisite capital to phase out coal assets more quickly and replacing these with cleaner energy. This partnership forms a critical alliance in our region’s battle against climate change.”