Singapore and China push ahead with cooperation on green finance
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Singapore and China push ahead with cooperation on green finance
More than 40 participants from the public and private sector joined a meeting in July of the Green Finance Taskforce (GFTF) The taskforce is a joint initiative of the Monetary Authority of Singapore (MAS) and the People’s Bank of China (PBoC) The two countries said they are strengthening their partnership to make their taxonomies interoperable, with China’S first syndicated loan aligned with the taxonomy in June.
More than 40 participants from the public and private sector joined a meeting in July of the Green Finance Taskforce (GFTF), a joint initiative of the Monetary Authority of Singapore (MAS) and the People’s Bank of China (PBoC).
“The GFTF remains committed to jointly develop concrete and tangible solutions to accelerate the growth of sustainable finance to support real economy needs for Asia’s net zero transition,” said Gillian Tan, chief sustainability officer at MAS.
Regulators in the Asia-Pacific (APAC) region are increasingly recognising that climate risks pose a threat to financial stability and are seeking to address the impact through regulation and oversight, the UN has said.
MAS and the PBoC created the green finance taskforce in 2023 and announced last year they would more closely align their green taxonomies and develop a new platform for sharing companies’ environmental data.
The two countries said they are strengthening their partnership to make their taxonomies interoperable, with China’s OCBC Bank arranging the country’s first syndicated loan aligned with the taxonomy in June.
“These efforts aim to further harmonise sustainable finance standards and facilitate greater cross-border investments,” they said.
The multi-jurisdiction common ground taxonomy (M-CGT) is a set of environmental objectives and criteria which are a reference for financial intuitions and investors to determine what is a “green” investment and is designed to help facilitate cross-border financial flows.
The two countries noted that Singapore-based issuers had shown interest at marketing roadshows for green panda bonds and for aligning debt financing with the taxonomy.
The taskforce meeting also discussed work on how technology can help to monitor emissions and provide green financing solutions, as well as potential collaboration in biodiversity and nature financing and opportunities for developing green finance in Shanghai.