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Green Finance
China, Singapore talk green finance cooperation
Taxonomy alignment, finance flow facilitation, decarbonization rating development
Tom King 24 May 2024

The Monetary Authority of Singapore (MAS) and the People’s Bank of China (PBoC) at the second China-Singapore Green Finance Taskforce (GFTF) meeting held in Beijing on May 24 discussed initiatives in green and transition finance with the aim of advancing cooperation between the two countries.

The discussions focused on the alignment of taxonomies, facilitation of green finance flows and the development of a decarbonization rating platform. Other areas broached included nature and biodiversity, ESG data model interoperability and the use of artificial intelligence and data analytics to facilitate the collecting, accessing and harnessing of high-quality ESG data to drive green and transition efforts.

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

This move 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.

The MAS and PBoC also conducted an industry capacity building session on transition taxonomies to deepen understanding of transition activities as defined by China and Singapore respectively.

On the subject of products and instruments, representatives of the Singapore Exchange and China International Capital Corporation attending the meeting note that they are collaborating on a so-called “green corridor” to facilitate green financing flows between Singapore and China.

Initially, the focus will be on encouraging green panda bond issuances given the demand from Singapore issuers to raise capital in the Chinese onshore bond market.

The MAS adds that it will provide support to encourage such financing flows through grant schemes such as its Sustainable Bond Grant Scheme.

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

Gillian Tan, the MAS’ assistant managing director (development and international) and chief sustainability officer, who co-chairs the GFTF with Ma Jun, chair of the China Green Finance Committee, states: “The GFTF is a key platform for China and Singapore to jointly develop concrete and meaningful initiatives to advance green finance cooperation.”

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