China, Singapore Strengthen Green Finance Cooperation
The Monetary Authority of Singapore (MAS) and the People's Bank of China (PBC) recently held their second China-Singapore Green Finance Taskforce (GFTF) meeting.
This meeting focused on advancing collaboration in green and transition finance between the two countries. Here's a breakdown of the key points discussed:
1. Building a Common Ground
MAS and PBC are working on aligning their green finance classification systems (taxonomies) by year-end. This will allow companies from both nations to easily access green financing options across borders.
An industry session was held to deepen understanding of how China and Singapore define "transition activities" within their taxonomies.
2. Green Financing Channels
Singapore Exchange and China International Capital Corporation are launching a "Green Corridor" to simplify green finance flows between the two countries.
This initiative will initially focus on encouraging Singaporean companies to issue green panda bonds in China's onshore bond market.
The first such issuance, a 3-year sustainability-linked panda bond by CapitaLand Investment, is expected to pave the way for more green financing in the future.
3. Technology for Green Solutions
The Metaverse Green Exchange and Beijing Green Exchange are developing a platform to track carbon emissions data for Chinese companies.
This data will help Singaporean and Chinese financial institutions design effective green financing solutions for these companies.
The workstream is also exploring ways to align the platform's rating methodology with existing green finance taxonomies.
4. Looking Forward
The meeting highlighted emerging areas of interest, such as nature and biodiversity financing, compatible ESG data models, and utilising AI and data analytics for green initiatives.
5. Collaboration is Key
Ms. Gillian Tan, co-chair of the GFTF, stressed the importance of the GFTF as a platform for practical collaboration in green finance.
The strong partnership between MAS, PBC, and industry players aims to mobilise the necessary funds for a successful regional transition to net-zero emissions.
This meeting signifies a critical step forward in China and Singapore's joint efforts to promote green finance and support the transition to a sustainable future.
For more sustainable finance news
Discover an extensive network of ESG providers here
Source: MAS
