Singapore is setting up a new office under the Ministry of Finance to provide sustainable funding

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Singapore is setting up a new office under the Ministry of Finance to provide sustainable funding

The Green Bonds Programme Office will develop a framework and work with statutory boards, as well as perform industry engagement and manage investor relations, he said.

Last month, the National Environment Agency (NEA) announced the establishment of a S$3 billion Multicurrency Medium Term Note (MTN) Programme and Green Bond Framework, the first statutory board to do so.

“This will support corporates in accessing financing as they invest in green projects and transition towards more sustainable business practices,” he added.

Meanwhile, to help individuals, SMEs and large corporates access sustainable financing, the Monetary Authority of Singapore will facilitate the issuance of sustainable financing instruments, including green and sustainability-linked bonds and loans, said Mr Wong.

Story Highlights

  • Finance Minister Lawrence Wong announced this during his opening address at the Singapore Sustainable Investing and Financing Conference on Thursday (Sep 30).

  • To grow the supply and demand for green investments, Mr Wong said the Government will lead the way by laying out the framework and rules, test run them with its issuances, and find ways to convene and connect the different stakeholders.

Last month, the United Nation’s Intergovernmental Panel on Climate Change (IPCC) released a major report detailing the latest scientific assessments of climate change.

It highlighted the increasing urgency for climate action as well as green investment funds and sustainable financing to help the environment. 

Speaking at the conference, Mr Wong said the banking, finance and investment community plays a critical role in facilitating investments in renewable energy solutions and carbon-neutral technologies. As public efforts alone will not cover the scale of climate change mitigation in the region, Mr Wong strongly encouraged more in the private sector to continue identifying opportunities and to leverage on partnerships in the blended finance space.

With a “huge” market for voluntary carbon credits, Mr Wong said Singapore has the potential to become a carbon services and trading hub for the region. “Carbon markets today tend to be fragmented and complex, Asia will need a voluntary carbon market that is large, transparent, verifiable and environmentally robust … we will do our utmost to support the development of such a market in Singapore,” he said, adding that the government is happy to support private sector initiatives to develop a carbon credits market in the country.