$2.5 Billion Renewable fund for South East Asia
A RENEWABLE-ENERGY fund will invest more than $2.5 billion in Southeast Asian renewable energy projects to support the region’s recovery from the pandemic, with a focus on the Philippines, Vietnam and Indonesia.
In a statement issued Monday, the South East Asia Clean Energy Facility (SEACEF) said it will offer high-risk venture capital-type funding initiative to “fill the gap” in financing early-stage clean energy projects in the region.
“Many potentially viable projects in Vietnam, Indonesia, the Philippines and other parts of Southeast Asia would not happen without such early-stage funding, as most private sector investors are unwilling to get involved until early-stage development risks are successfully mitigated,” SEACEF said.
The initiative, managed by Singapore fund management firm Clime Capital, is supported by private foundations like Bloomberg Philanthropies and London-headquartered Children’s Investment Fund Foundation (CIFF).
Early-stage investment will support the development of solar and wind facilities and energy storage, as well as technologies accelerating low carbon transition, such as energy efficiency and clean-energy transmission infrastructure.
Currently, an initial $10 million has been injected into SEACEF, with an additional $40 million due shortly.
“The launch of this new fund comes at a critical moment, with the COVID-19 (coronavirus disease 2019) crisis shrinking traditional sources of finance, dedicated towards bending the curve of climate change,” Imraan Mohammed, head of Impact Investing at CIFF, said.
“The opportunities for renewable energy investment remain significant, so this high-risk capital is a cornerstone at a time of great uncertainty, which can catalyse the significant funding required to turn proposals into major clean energy projects,” Mason Wallick, managing director of Clime Capital, said.
The International Energy Agency is projecting a 20% decline in global energy investment this year to $400 billion.