New climate fund for Southeast Asia targets US$2.5 billion in clean energy investment

The Southeast Asia Clean Energy Facility has a focus on getting new projects under way in Vietnam, Indonesia and the Philippines and the wider region

Rising urbanisation and economic growth has left nations scrambling to provide enough power while keeping promises to cut emissions

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Emissions rise from an oil refinery. Southeast Asia is struggling to switch to cleaner alternatives than burning fossil fuels. Photo: Bloomberg

Published: 12:30pm, 30 Jun 2020Updated: 8:29pm, 30 Jun 2020

A new climate fund backed by philanthropic donors is aiming to trigger US$2.5 billion of clean energy investment in Southeast Asia and aid the region’s green recovery after the coronavirus.

The Southeast Asia Clean Energy Facility (SEACEF) is managed by Singapore-based Clime Capital, with an initial investment of US$10 million and a focus on getting new projects under way in Vietnam, Indonesia and the Philippines.

“We need to mobilise billions to make a meaningful impact on climate change,” said Mason Wallick, Clime Capital’s managing director, who sits on the SEACEF investment committee.

Money is most needed to fill a gap in funding to help early-stage projects get off the ground, he added.

Anglers fish amid thick haze at a coastal area in Jakarta, Indonesia. Photo: AFP

The Asia-Pacific, home to two-thirds of the world’s people, is experiencing rising urbanisation, population and economic growth, leaving nations scrambling to provide enough electric power while keeping promises to cut heat-trapping emissions.