Developing a Vibrant Green Finance Ecosystem
MAS supported the launch of Singapore’s first Centre of Excellence to drive Asia-focused Green Finance Research and Talent Development
13 October 2020
Supported by MAS and nine founding industry partners, the Singapore Management University (SMU) and Imperial College Business School launched the Singapore Green Finance Centre in October 2020. The Centre will undertake research to help develop strategies for policy makers and financial institutions, to support Asia’s transition to a low carbon future and scale up green finance expertise at the graduate level and among mid-career professionals.
- Joint Imperial College-SMU-MAS media release, published on 13 October 2020, on the launch of the Singapore Green Finance Centre
- Managing Director of MAS Ravi Menon’s speech “Harnessing the Power of Finance for a Sustainable Future”, delivered on 13 October 2020, at the Financial Times Investing for Good Asia Digital Conference
MAS extended its support for green and sustainable financing through the Sustainability-Linked Loans and Bonds Grant Schemes
24 November 2020
MAS launched the Green and Sustainability-Linked Loan Grant Scheme on 24 November 2020. This scheme supports businesses that wish to obtain green and sustainable financing by defraying the expenses of engaging independent service providers to validate the green and sustainability credentials of the loan. The grant is also aimed at encouraging banks to develop green and sustainability-linked loan frameworks to make such financing more accessible to small- and medium-sized enterprises (SMEs).
MAS also expanded the scope of its existing Sustainable Bond Grant Scheme to include sustainability-linked bonds. This scheme also covers the post-issuance costs of engaging independent sustainability assessment and advisory service providers to obtain external reviews or report for bonds under the scheme.
The Green Finance Industry Taskforce (GFIT) developed a taxonomy for consultation and launched an Environmental Risk Management (ENRM) handbook for the Singapore financial sector
28 January 2021
GFIT, convened by MAS, comprises representatives from financial institutions, corporates, non-governmental organisations and financial industry associations. The Taskforce seeks to accelerate the development of green finance through four key initiatives: (i) develop a taxonomy; (ii) enhance environmental risk management practices of financial institutions; (iii) improve disclosures; and (iv) foster green finance solutions. GFIT also issued a consultation paper proposing a taxonomy to help financial institutions identify and classify activities that can be considered green or in transition. The latter facilitates the financing of activities that will progressively lower carbon emissions over time, while supporting inclusive economic and social development.
GFIT has also developed an ENRM handbook. The ENRM handbook offers guidance to banks, insurers and asset managers on best practices in environmental risk management and will support the finance industry’s efforts to implement MAS’ Guidelines on Environmental Risk Management.
MAS supported industry efforts to anchor deep sustainable finance knowledge, capabilities and solutions in Singapore
9 March 2021
MAS supported Moody’s, a global integrated risk assessment firm, in building a comprehensive suite of ESG resources out of Singapore to support growth in green and sustainable finance activity, including establishing an ESG Centre of Excellence for investor outreach, engagement and training, and an ESG-focused Innovation Lab and Technology Accelerator.
In addition, the Sustainable Finance Institute Asia (SFIA) established its headquarters in Singapore. MAS supported SFIA’s new independent research and capacity building institute, aimed at catalysing and supporting the implementation of sustainable finance policy initiatives in Asia.
MAS supported Moody’s, a global integrated risk assessment firm, in building a comprehensive suite of ESG resources out of Singapore to support growth in green and sustainable finance activity, including establishing an ESG Centre of Excellence for investor outreach, engagement and training, and an ESG-focused Innovation Lab and Technology Accelerator.
In addition, the Sustainable Finance Institute Asia (SFIA) established its headquarters in Singapore. MAS supported SFIA’s new independent research and capacity building institute, aimed at catalysing and supporting the implementation of sustainable finance policy initiatives in Asia.