Key Takeaways
- • Singapore launched SPIRE Asia (Scaling Projects and Investments for Resilience in Asia), a programme to mobilise up to $500 million in investments for climate resilience in Southeast Asia's agri-food sector, announced November 10 by Minister for Sustainability and the Environment Grace Fu at COP31 in Antalya, Türkiye.
- • The programme has three components: a climate risk and investment data platform, a market development facility to turn projects into investment-ready opportunities, and a blended finance fund with a target size of up to $500 million.
- • The blended finance fund will use catalytic capital to improve the risk-return profile for commercial investors, targeting projects that struggle to raise funding at scale or on acceptable terms.
- • Temasek Trust will lead the market development facility, while Enterprise Singapore leads the data platform with Temasek Trust support.
- • The programme targets a shortage of private investment in climate adaptation, with rising temperatures, shifting rainfall and extreme weather disrupting agricultural production and food supply chains.
Summary
The programme was jointly developed by the National Climate Change Secretariat, the Monetary Authority of Singapore (MAS) and Enterprise Singapore. It aims to address a shortage of investment in climate adaptation by helping projects become sufficiently developed and structured to attract private capital. Its three components are a data platform to identify climate risks and investment opportunities, a market development facility to aggregate and develop projects into investment-ready opportunities, and a blended finance fund with a target size of up to $500 million.
The blended finance fund will deploy catalytic capital to address specific investment risks and improve the risk-return profile for commercial investors. According to the announcement, this is intended to enable financing for projects that might otherwise struggle to secure funding at the required scale or on acceptable terms. Temasek Trust, the philanthropic arm of Temasek Holdings, will lead development of the market development facility, working with regional and global partners to identify potential projects. Enterprise Singapore will lead the data platform, supported by Temasek Trust.
The programme focuses on climate adaptation across the agri-food value chain, as rising temperatures, changing rainfall patterns and extreme weather increasingly disrupt agricultural production, livelihoods and food supply chains in Southeast Asia. MAS said the initiative would also create opportunities for Singapore-based financial institutions, investors and agri-tech companies to participate in regional adaptation investments and scale their solutions.
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