Continue reading this on our app for a better experience

Open in App
Home News Environmental, Social and Governance

MAS, People’s Bank of China further collaboration in green and transition finance

Jovi Ho
Jovi Ho • 3 min read
MAS, People’s Bank of China further collaboration in green and transition finance
The two parties met in Beijing at the 2nd China-Singapore Green Finance Taskforce (GFTF) meeting on May 20. Photo: Bloomberg
Font Resizer
Share to Whatsapp
Share to Facebook
Share to LinkedIn
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

The Monetary Authority of Singapore (MAS) and the People’s Bank of China (PBC) discussed initiatives to advance cooperation in green and transition finance between China and Singapore at the 2nd China-Singapore Green Finance Taskforce (GFTF) meeting on May 20. 

The initiatives discussed in Beijing covered the alignment of taxonomies, facilitation of green finance flows and the development of a decarbonisation rating platform, according to MAS. 

The GFTF was set up in 2023, with three workstreams led by private and public sector players. These focus on initiatives to scale up green and transition financing flows between Singapore, China and the region.

On the taxonomies and definitions workstream, MAS and PBC will complete the mapping of the Singapore Asia Taxonomy (SAT) to the International Platform on Sustainable Finance (IPSF)’s Common Ground Taxonomy (CGT) by the end of this year. 

This will facilitate the cross-border issuance by Singapore and Chinese corporates of CGT-aligned green financing bonds and loans originated by Singapore and Chinese financial institutions, says MAS. 

The IPSF’s CGT, first published in November 2021 and updated in June 2022, provides an in-depth comparison that puts forward areas of commonality and differences between the EU’s and China’s green taxonomies. 

See also: Less than 30% of firms worldwide feel ready for independent ESG audit: KPMG

Next, on the products and instruments workstream, the Singapore Exchange and China International Capital Corporation are collaborating on a “green corridor” to facilitate green financing flows between the two countries. 

As a start, the workstream will focus on encouraging green panda bond issuances, given the demand from Singapore issuers to raise capital in the Chinese onshore bond market. MAS will provide support to encourage such financing flows through grant schemes like the Sustainable Bond Grant Scheme.

CapitaLand Investment (CLI) was the first Singapore-based company to issue a three-year sustainability-linked panda bond of RMB1 billion ($190 million) under the green corridor. CLI announced in March that the subscription rate was 1.65 times. 

See also: COP29 Presidency sets out agenda, emphasises upcoming work on New Collective Quantified Goal

Finally, on the technology workstream, Metaverse Green Exchange (MVGX) and Beijing Green Exchange are developing a carbon accounting and decarbonisation rating platform.

The platform will aggregate Chinese corporates’ carbon emissions data to support Singapore and Chinese financial institutions in structuring green financing solutions for these corporates. 

Looking ahead, the workstream will also study the feasibility of aligning the decarbonisation rating methodology with the CGT and SAT. 

The meeting also discussed emerging areas of interests, including nature and biodiversity, ESG data model interoperability, and the use of artificial intelligence 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, MAS’s assistant managing director (development and international) and chief sustainability officer, says 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,” adds Tan, who co-chairs the GFTF with Ma Jun, chair of the China Green Finance Committee.

×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
© 2024 The Edge Publishing Pte Ltd. All rights reserved.