SINGAPORE (Reuters) – HSBC Holdings (NYSE:) and Singapore state investor Temasek are teaming up to set up a debt financing platform for sustainable infrastructure projects, with an initial focus on Southeast Asia.

They announced that the companies would jointly invest at least $150 million in equity to help fund loan funding in the first phase. This platform, located in Singapore, plans to issue more loans than $1 billion within the next five years.

The companies stated that the platform would target sustainable transportation, storage and water treatment as well as renewable energy. This will help to meet climate change mitigation targets.

Noel Quinn (group chief executive, HSBC) stated that the partnership “aims at tackling some of the largest barriers to financing sustainable infrastructure in areas where it is most urgently needed.”

Investors, investors, and governments around the world are working together to create climate finance plans that will help fund the shift to a low carbon economy.

Some $2 trillion in infrastructure investment is needed over the next decade to enable Southeast Asia’s sustainable transition, a report issued by Bain & Company, Microsoft (NASDAQ:) and Temasek said on Wednesday.

HSBC and Temasek indicated that the Asian Development Bank would provide technical assistance and Clifford Capital Holdings would help with project finance. Clifford Capital Holdings is a Singapore-based specialist in financing and distribution of infrastructure assets.

Dilhan Pilay, Temasek International CEO said that only public funds will be able to address the magnitude of Southeast Asia’s transition and mitigation of climate change. By joining forces we can increase the impact of our capital as well scale to address these opportunities.