Singapore and China Central Banks Bolster Green Finance Cooperation

Singapore and China Central Banks Bolster Green Finance Cooperation

by May 21, 2024

The Monetary Authority of Singapore (MAS) and the People’s Bank of China (PBC) are advancing their cooperation in green and transition finance.

This announcement follows the 2nd China-Singapore Green Finance Taskforce (GFTF) meeting held on 20 May 2024.

The GFTF, established in 2023, focuses on scaling up green and transition financing flows between Singapore, China, and the region.

The latest meeting highlighted progress in several key areas. MAS and PBC aim to align the Singapore Asia Taxonomy (SAT) with the International Platform on Sustainable Finance’s Common Ground Taxonomy (CGT) by year-end, facilitating cross-border issuance of CGT-aligned green financing bonds and loans.

An industry capacity-building session on transition taxonomies was also conducted to enhance understanding of transition activities in both countries.

Additionally, the Singapore Exchange and China International Capital Corporation are collaborating on a Green Corridor to support green financing flows, with an initial focus on green panda bond issuances.

MAS is providing grant support for this initiative. CapitaLand Investment issued the first sustainability-linked panda bond under the Green Corridor, expected to pave the way for more such financings.

In the area of technology, Metaverse Green Exchange and Beijing Green Exchange are developing a carbon accounting and decarbonisation rating platform.

This platform will aggregate Chinese corporates’ carbon emissions data to aid in structuring green financing solutions. The feasibility of aligning the decarbonisation rating methodology with the CGT and SAT is also being studied.

The meeting also discussed emerging areas of interests, including nature and biodiversity, ESG data model interoperability, and the use of AI and data analytics through Greenprint (Gprnt) and Project NovA! to facilitate the collecting, accessing and harnessing of high-quality ESG data to drive green and transition efforts.

Gillian Tan

Gillian Tan

Gillian Tan, MAS’ Assistant Managing Director (Development and International) and Chief Sustainability Officer, who co-chairs the GFTF said at the meeting,

“The GFTF is a key platform for China and Singapore to jointly develop concrete and meaningful initiatives to advance green finance cooperation.

 

The wide range of deliverables announced today is testament to the strong collaboration between MAS, PBC and industry partners from both countries and our shared ambition to mobilise the financing required for an effective transition to net zero in the region.”