Singapore Green Bond Framework Introduced for Upcoming Inaugural Singapore Sovereign Green Bond Issuance
Singapore Green Bond Framework to establish guidelines for green bond issuances by the public sector
The Singapore Government today published the Singapore Green Bond Framework (Framework), a governance framework for sovereign green bond issuances under the Significant Infrastructure Government Loan Act 2021 (SINGA). The Framework details the Singapore Government’s (i) intended use of green bond proceeds, (ii) governance structure to evaluate and select eligible projects, (iii) operational approach to manage green bond proceeds, and (iv) commitment to post-issuance allocation and impact reporting.
Key Features of the Framework
2 In line with the Singapore Government’s commitment to ensure that the green bonds issued by public sector agencies
a) Alignment with internationally recognised market principles and standards: The Framework is developed and structured in alignment with the core components and key recommendations
b) Stringent governance and oversight of project selection and allocation of proceeds: The Second Minister for Finance chairs the Green Bond Steering Committee
c) Technical screening to evaluate and identify green projects: The eligibility criteria for the Green Categories have been developed with reference to internationally recognised market principles and standards such as the ICMA Green Bond Principles and the Climate Bond Initiative (CBI) Taxonomy and Sector Criteria.
3 Proceeds from green bonds issued under the Framework will be used to finance expenditures in support of the Singapore Green Plan 2030. This facilitates the transition to a low-carbon economy in Singapore, and advances the United Nations Sustainable Development Goals. The following are the categories of Eligible Green Expenditures:
a) Renewable Energy
b) Energy Efficiency
c) Green Building
d) Clean Transportation
e) Sustainable Water and Wastewater Management
f) Pollution Prevention, Control and Circular Economy
g) Climate Change Adaptation
h) Biodiversity Conservation and Sustainable Management of Natural Resources and Land Use
4 Morningstar Sustainalytics, an independent ESG research firm, has completed an external review (Second-Party Opinion) on the green credentials of the Framework, and is of the view that the Framework is credible, impactful and aligns with internationally recognised market principles and standards.
5 Second Minister for Finance Indranee Rajah said at the Singapore Sustainable Investing and Financing Conference 2022, “We are committed as one Government to taking bold and decisive actions to tackle climate change, finance sustainable infrastructure, and catalyse the green economy. The publication of our Singapore Green Bond Framework is yet another important step forward in this regard”.
6 DBS Bank served as adviser to the Singapore Government on the development of the Framework. DBS Bank’s Global Head of Fixed Income, Clifford Lee, said, “As a leading financial hub with an AAA rating, Singapore is well-placed to lead the development of the Green Bond Framework, which will serve as a good reference point to help further develop, grow and deepen ESG financing in Asia. We are heartened to support the Singapore Government in the structuring and development of the framework which will provide a robust foundation for Singapore to further cement its position as a global green finance hub, and drive more high-quality public and private green bond issuances to fuel the nation’s climate ambitions.”
7 You can read more on the Singapore Green Bond Framework and the Second-Party Opinion at .
Inaugural Issuance of Singapore Sovereign Green Bond
8 To support Singapore’s transition to a low-carbon economy and spur Singapore’s development as a green finance hub, the Singapore Government has announced at Budget 2022 that the public sector will issue up to S$35 billion of green bonds by 2030
9 The Singapore Government will be issuing its inaugural sovereign green bond under the SINGA in the coming months. Known as Green SGS (Infrastructure) bonds, these bonds will be used to finance nationally significant infrastructure
10 The Monetary Authority of Singapore (MAS) will undertake the issuance and management of SGS on behalf of the Government. The MAS will provide more details about the upcoming issuance of the Green SGS (Infrastructure) bond closer to its issuance date.
About Ministry of Finance
The Ministry of Finance aims to advance the well-being and development of Singapore through Finance. The Ministry strives to achieve a balanced budget through prudent and sustainable fiscal policies, foster a regulatory environment conducive to business and enterprise, ensure prudent investment of the Government's reserves and other public funds, and sets policies for government procurement, customs regulation, accounting standards and business regulation.
We achieve this together with our departments (Accountant-General’s Department, Singapore Customs and Vital), and statutory boards/bodies (Accounting & Corporate Regulatory Authority, Inland Revenue Authority of Singapore, Tote Board and Singapore Accountancy Commission).
The Monetary Authority of Singapore (MAS) is Singapore’s central bank and integrated financial regulator. As a central bank, MAS promotes sustained, non-inflationary economic growth through the conduct of monetary policy and close macroeconomic surveillance and analysis. It manages Singapore’s exchange rate, official foreign reserves, and liquidity in the banking sector. As an integrated financial supervisor, MAS fosters a sound financial services sector through its prudential oversight of all financial institutions in Singapore – banks, insurers, capital market intermediaries, financial advisors, and financial market infrastructures. It is also responsible for well-functioning financial markets, sound conduct, and investor education. MAS also works with the financial industry to promote Singapore as a dynamic international financial centre. It facilitates the development of infrastructure, adoption of technology, and upgrading of skills in the financial industry.
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