Singapore blended finance vehicle reaches $250m first close with Temasek backing

The Energy Transition Acceleration Finance partnership (ETAF), a Singapore-based blended finance initiative focused on replacing coal with renewables, has confirmed a $250m first close.

The new fund, backed by the Monetary Authority of Singapore (MAS), Clifford Capital, and the Private Infrastructure Development Group (PIDG), aims to mobilise capital into earlier-stage or higher-risk energy transition infrastructure investments.

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While MAS and PIDG are providing catalytic capital for the first close, Temasek is also expected to contribute from its Concessional Capital for Climate Action fund, subject to definitive agreements. DBS Bank is participating as a senior lender to ETAF.

Clifford Capital Asset Management, the wholly owned asset manager of Clifford Capital, will act as the fund manager for ETAF.

The deal is part of wider efforts by the Singapore government to accelerate the energy transition. Overall, the government has pledged up to US$500m in concessional capital under FAST-P, Singapore’s Financing Asia's Transition Partnership, with the aim of catalysing up to US$5bn in investments to support Asia’s green transition.

A key aim behind the initiative is to reduce reliance on coal and fossil fuel imports by scaling up renewables. This is particularly urgent in Indonesia, which relies on coal for 70% of its electricity generation. Japan, South Korea and Taiwan are also highly reliant on fossil fuels, with more than 80% of their energy supply dependent on imports.

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