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.

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Source: MAS