Singapore $289 Billion Temasek Allocates $77 Million (S$100 Million) Concessional Capital for Climate Action (CCCA) Announced at Temasek 50th Anniversary, Launches Temasek 50-Year History Commemorative Book Titled “By Generations, For Generations: Fifty Years of Temasek As Told By The People Who Shaped It”
24th September 2024 | Hong Kong
Singapore Temasek with $289 billion AUM has allocated $77 million (S$100 million) Concessional Capital for Climate Action (CCCA) announced at Temasek 50th anniversary, and launches a Temasek 50-year history commemorative book titled “By Generations, For Generations: Fifty Years of Temasek As Told By The People Who Shaped It.” Temasek (23/9/24): “Mr Lim Boon Heng, Chairman of Temasek, announced Temasek’s commitment to set aside S$100 million as Concessional Capital for Climate Action (CCCA) at Temasek’s 50th anniversary dinner speech, on Monday, 23 September 2024 … … CCCA seeks to support climate action initiatives by providing more flexible, patient, and favourable financing which will address these market barriers. This will help to accelerate the green transition and open pathways towards the 1.5 degrees goal, in the process crowding in other forms of capital, whether commercial or concessional, to support marginally bankable opportunities. The S$100 million is funded by Temasek’s community gifts, which aim to drive intergenerational impact aligned with our community objectives. Since 2003, Temasek has been setting aside a portion of its net positive returns above its risk-adjusted cost of capital for gifts that meet the objectives of connecting people, uplifting communities, protecting planet, and advancing capabilities. These gifts are philanthropic in nature and have the potential to be catalytic in mobilising other forms of capital.” Temasek Commemorative Book: “Temasek hosted a dinner tonight to commemorate its growth and evolution from a Singapore holding company to a global investing firm. Prime Minister and Minister for Finance Lawrence Wong was the Guest of Honour at the dinner, which was attended by more than 600 Temasek partners and friends, past and present. These included representatives from the board and C-suite executives from its local and global portfolio companies, as well as Singapore Cabinet ministers and government and business leaders from Singapore and around the world. Past and present Temasek Board members and senior management also joined the dinner held at the Shangri-La Singapore. The highlight of the evening was the launch of a commemorative book charting its 50 years of history. Titled “By Generations, For Generations: Fifty Years of Temasek As Told By The People Who Shaped It’’, it is Temasek’s first and only official book chronicling the events and milestones of the company. It was written by former journalist Ong Soh Chin, who drew material from extensive research and interviews with about 90 staff, alumni, and business partners. Their stories provided depth and colour to what went on behind the scenes of key business deals, offering a rare insider glimpse into the history of the company … … Apart from facts and figures, the book also captures the passion and commitment of the people who have made Temasek what it is today – a global investor firmly rooted in Singapore, with a duty to future generations. The book caps a year of events commemorating the company’s 50th anniversary. These include its commitment to set aside S$100 million as Concessional Capital for Climate Action to mobilise funding for marginally bankable projects; as well as T-Spring, a S$150 million gift to the community supporting skills development, scholarships, and fellowships so that Singapore’s workforce and organisations can be prepared for a different world. Temasek has also commissioned an eight-part YouTube series and a television documentary to be aired on Mediacorp.”
“ Singapore $289 Billion Temasek Allocates $77 Million (S$100 Million) Concessional Capital for Climate Action (CCCA) Announced at Temasek 50th Anniversary, Launches Temasek 50-Year History Commemorative Book Titled By Generations, For Generations: Fifty Years of Temasek As Told By The People Who Shaped It “
Lim Boon Heng, Chairman of Temasek Holdings: “Climate change is the defining crisis of our time. At Temasek, we have been investing in sustainability across the years, and have deployed commercial capital to scale innovation for the green transition. At the same time, we see the criticality of concessional capital to catalyse financing into emerging markets and developing economies. Blended finance initiatives like the Monetary Authority of Singapore’s Financing Asia’s Transition Partnership (FAST-P) are key in lining up long term investors and philanthropic entities alongside commercial investors for this purpose. Through the Concessional Capital for Climate Action, we hope our community gift can contribute to concessional capital emerging as an asset class, to mobilise the varied forms of capital necessary to bridge the climate financing gap. We look forward to partnering other like-minded organisations to advance progress on this front, so that we can Do Well, Do Right, and Do Good together – for the prosperity of current and future generations.
I am very pleased that we can mark our anniversary with this factual yet reflective account of Temasek’s first 50 years. Since our inception in 1974, our journey has always been driven by a sense of purpose to do well, do right, and do good. But more so, this book is a tribute to our past and present generations of board members, staff, partners, alumni, and beneficiaries who have all contributed much to the success of where we are today. It demonstrates the courage, purpose, resilience, and tenacity of our people, past and present, and a continued commitment to building a sustainable organisation so every generation prospers. Represented within its pages are the spirit and purpose of this truly unique company – Singaporean in essence but global in outlook – as it moves boldly into the future.”
About Temasek’s Concessional Capital for Climate Action – The global community has made notable progress on climate action in the past year, but the pace and scale are still insufficient. With the annual global climate financing gap for developing countries expected to increase double fold by 2030, there is a clear and urgent need for more resources to be channelled towards climate action. The battle for net zero will be won or lost in Asia, which hosts more than half of the world’s population and contributes more than half of global carbon emissions. Yet the region faces unique structural constraints and challenges that hinder the pace of progress. Particularly in Southeast Asia, ambitious plans to decarbonise while building the industries of tomorrow concurrently would require the scaling of catalytic financing. Through innovative financial mechanisms such as blended finance, these could address emerging market risks, higher cost of capital, and optimise the economics necessary to accelerate the transition. CCCA seeks to support climate action initiatives by providing more flexible, patient, and favourable financing which will address these market barriers. This will help to accelerate the green transition and open pathways towards the 1.5 degrees goal, in the process crowding in other forms of capital, whether commercial or concessional, to support marginally bankable opportunities. The S$100 million is funded by Temasek’s community gifts, which aim to drive intergenerational impact aligned with our community objectives. Since 2003, Temasek has been setting aside a portion of its net positive returns above its risk-adjusted cost of capital for gifts that meet the objectives of connecting people, uplifting communities, protecting planet, and advancing capabilities. These gifts are philanthropic in nature and have the potential to be catalytic in mobilising other forms of capital. The success of CCCA would be measured by its ability to scale positive outcomes in the area of climate action, including the ability to avoid, mitigate, and adapt to the impact of climate change; promote biodiversity and enable people to live in harmony with nature; and encourage sustainable living choices and behaviours that promote responsible resource use for better human and environmental health. Examples of projects include marginally bankable clean infrastructure projects in Asia. CCCA represents a novel way of advancing Temasek’s deployment of philanthropic capital, going beyond conventional grant-making, and a deepened commitment towards the climate agenda. It is also the first time that Temasek is contributing concessional capital towards the green transition. Through CCCA, Temasek hopes to mobilise other forms of capital across the broader climate ecosystem which can help finance marginally bankable projects, and hence amplify the impact of its giving activities in support of its community objective of protecting the planet.”
Temasek’s Climate Finance Efforts
- Sustainability is at the core of everything that Temasek does – from its mandate to deliver sustainable returns over the long term, to its strategy of how it operates as an institution, shape its portfolio, and engage its portfolio companies to build sustainable businesses.
- The transition to a sustainable economy presents Temasek with new and growing opportunities to invest with both returns and impact in mind. Temasek makes use of its flexibility to deploy capital across a wide array of opportunities, enabling companies to transition to a more sustainable future and continuously increasing its investments in line with the Sustainable Living trend.
- As at 31 March 2024, Temasek’s portfolio value of investments aligned with the Sustainable Living trend was S$44 billion, comprising of $38 billion for sustainability-focused investments and $6 billion was climate transition investments. Temasek taps on opportunities to invest in future growth sectors and business models, in key focus areas such as food, water, waste, energy, materials, clean transportation, and the built environment, and encourage enterprises to transform through efforts in innovation.
- Beyond making direct investments, Temasek seeks out opportunities to collaborate with like-minded partners to contribute to systems-level change required to solve major sustainability challenges. Through strategic partnerships as well as the establishment of dedicated investment platforms, Temasek aims to contribute towards accelerating and scaling the deployment of financial capital across varying growth and maturity stages.
Mobilising capital to drive investments across varying technology and commercial maturity stages for green and inclusive growth:
- BEV Select Fund (venture stage): Temasek took part in the Select Fund, under Breakthrough Energy Ventures, to help late-stage clean-tech startups and build new facilities in key markets including Asia.
- Decarbonization Partners (growth stage): Temasek partnered BlackRock to establish Decarbonization Partners, which invests in late-stage venture capital and early-stage growth equity companies targeting de-risked technologies across clean energy, electrification, green materials, and a circular, digital economy.
- Partnerships with Brookfield (late growth and mature/established stage): Temasek invested in Brookfield Global Transition Funds (BGTF I and BGTF II) to expand clean energy production, provide decarbonisation solutions to transform carbon-intensive businesses, and scale decarbonisation solutions.
- GenZero (late-venture and late growth stage): Temasek established GenZero, an investment platform focused on accelerating decarbonisation globally, deploying capital across nature-based solutions, technology-based solutions, and carbon ecosystem enablers. Examples of GenZero’s investments include a land restoration project in Ghana, sustainable aviation fuel-related technology companies such as Velocys, carbon removal technology companies like CarboCulture, and a carbon marketplace and exchange, Climate Impact X (CIX).
- LeapFrog Investments: Temasek committed to the LeapFrog Climate Fund which focuses on investments in companies that provide green tools and technologies such as 2-wheeler EVs, rooftop solar providers, and smart farming businesses. The fund targets the energy, mobility, built environment and agricultural sectors. It aims to provide growth equity and distinctive expertise to fast-scaling consumer companies.
Mobilising capital to increase bankability of sustainable projects in Asia:
- Pentagreen Capital: Temasek’s joint venture with HSBC, Pentagreen Capital, focuses on debt financing dedicated to accelerate the development of sustainable infrastructure in Asia. It aims to catalyse financing for marginally bankable clean infrastructure projects.
Green Investments Partnership: Temasek collaborated with Allied Climate Partners, International Finance Corporation, and the Monetary Authority of Singapore (MAS) to establish the Green Investments Partnership, which aims to increase bankability of green and sustainable projects in Asia. This is part of MAS’ Financing Asia’s Transition Partnership (FAST-P), a Singapore blended finance initiative.
Singapore $289 Billion Temasek Allocates $77 Million (S$100 Million) Concessional Capital for Climate Action (CCCA) Announced at Temasek 50th Anniversary, Launches Temasek 50-Year History Commemorative Book Titled “By Generations, For Generations: Fifty Years of Temasek As Told By The People Who Shaped It”
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