Singapore has recently launched its Green Plan 2030, a testament to its firm commitment to transition into a low-carbon economy. Green finance is a key component of the plan with the government announcing the use of green bonds to finance public infrastructure projects. The move will further boost the country’s status as a sustainable finance hub in Asia alongside its role as project financing center in the region.
Meanwhile, infrastructure financing is a huge challenge to Asia, particularly to the emerging economies of Southeast Asia. With public funding already under pressure, mobilizing private capital is crucial. While interest is high, private capital continues to be sidelined as traditional project financing issues remain. Singapore’s green infrastructure bonds may prove to be what is needed to jumpstart private sector participation.
Already, green bonds are making waves across the world with record issuance in 2020. Singapore’s plan could pave the way for a steady supply and demand for green bonds in Southeast Asia. Green bonds offer governments and corporates a much-needed alternative funding option. On the other hand, investors could use green bonds to meet sustainability targets in their portfolios. However, challenges on both conventional project finance and green bond markets remain and could stifle the growth of this market.
The Asset Events+, in association with Fitch Ratings, is pleased to be hosting this exclusive webinar to discuss the outlook for infrastructure in Asia as well as examine how green bonds could be used to finance these projects.