British asset management company Schroders [SDR:LN] and the US non-profit Conservation International will jointly launch a nature-focused venture capital firm in Singapore named Akaria Natural Capital, as reported by Reuters on July 25. Akaria Nature Capital will be one of the first fund managers in Singapore dedicated to accelerating investment in natural climate solutions. The new firm will first provide funding for 15 to 20 highly qualified projects that promote natural climate solutions in Southeast Asia and eventually manage a series of funds that invest in the region. The firm will apply for a fund management license from the Monetary Authority of Singapore.

Financial institutions are becoming more aware of sustainable investment opportunities in Southeast Asia that contribute to environmental protection while providing a high return. For instance, Beijing-based venture capital firm Atlas Capital revealed its intention to establish a USD10bn fund to invest in US climate technology companies looking to grow in Southeast Asia. An overseas green fund with a target size of USD600m will also be launched by China’s Everbright [0165:HK] to finance projects in Southeast Asia and other Asian nations. According to Morningstar, by the end of 2021, there were 860 climate-themed mutual funds and exchange traded funds (ETFs) globally with a combined size of USD408bn.

Sources:

https://www.reuters.com/business/sustainable-business/schroders-teams-up-with-conservation-body-invest-nature-protection-projects-2022-07-25/

https://www.schroders.com/zh-cn/cn/public/insights/sustainability/how-can-the-way-we-invest-help-the-planet/

https://asia.nikkei.com/Spotlight/DealStreetAsia/Atlas-Capital-aims-to-net-10m-for-Southeast-Asia-climate-tech-fund

http://fund.eastmoney.com/a/202204252357198440.html

https://www.everbright.com/zh-hans/news/%E5%85%89%E6%8E%A7%E6%B5%B7%E5%A4%96%E5%9F%BA%E7%A1%80%E8%AE%BE%E6%96%BD%E5%9F%BA%E9%87%91%E4%BA%8C%E6%9C%9F%E8%8E%B7%E4%BA%9A%E6%8A%95%E8%A1%8C%E6%89%BF%E8%AF%BA%E5%87%BA%E8%B5%841%E4%BA%BF%E7%BE%8E%E5%85%83