Developing a Vibrant Green Finance Ecosystem
Launch of world's first multi-sector transition taxonomy
3 December 2023
MAS launched the Singapore-Asia Taxonomy for Sustainable Finance (Singapore-Asia Taxonomy) – which sets out detailed thresholds and criteria for defining green and transition activities that contribute to climate change mitigation across eight focus sectors. This followed four public consultations over four years. The Singapore-Asia Taxonomy is the first taxonomy globally to pioneer the concept of a “transition” category, which refers to activities that do not meet the definition of “green” now but are on a pathway to net zero or contributing to net zero outcomes.
Launch of Transition Credits Coalition (TRACTION) and announcement of pilots to develop transition credits for the early retirement of Asia’s coal plants
4 December 2023
MAS announced the launch of TRACTION and two pilot projects to test the use of high-integrity transition credits in transactions for the early retirement of coal-fired power plants (CFPPs). Supported by close to 30 members and knowledge partners across key stakeholder groups, TRACTION will study the challenges and propose solutions to scale the early retirement of CFPPs in Asia through high-integrity carbon credits.
This followed the publication of a working paper in September 2023 setting out how high-integrity carbon credits can be utilised as a complementary financing instrument to accelerate and scale the early retirement of coal-fired power plants. The paper explores the conditions for generating such carbon credits, and identifies what is needed to develop a high-quality market for such credits.
- MAS media release, published on 4 December 2023, on MAS’ TRACTION
- MAS-McKinsey joint media release, published on 26 September 2023, on the working paper
- Opening remarks by Deputy Managing Director (Markets & Development) Mr Leong Sing Chiong, “Harnessing the Potential of High-integrity Carbon Credits for Managed Phaseout of Coal”, delivered on 26 September 2023, at the MAS-McKinsey Working Paper Launch Event
Singapore Sustainable Finance Association
24 January 2024
The Singapore Sustainable Finance Association was launched as the first cross sectoral industry body to support the development of Singapore as a leading global centre for sustainable finance.
Launch of Jobs Transformation Map (JTM) on Sustainable Finance
17 April 2024
Minister of State, Ministry of Trade and Industry and Ministry of Culture, Community and Youth, and Board Member of MAS, Mr Alvin Tan, launched the Sustainable Finance Jobs Transformation Map, which lays out the impact of sustainability trends on jobs in Singapore’s financial services sector and the emerging skills that the workforce will require to serve sustainable financing demand in the region. MAS has set aside S$35 million in the Financial Sector Development Fund, and is working with the Institute of Banking & Finance, financial institutions, unions, institutes of higher learning and training providers, to support upskilling and reskilling of the workforce, and develop specialists in sustainable finance over the next three years.
Financing Asia's Transition (FAST) Conference
17 April 2024
The second edition of the FAST Conference, jointly organised by MAS, BlackRock and Temasek, brought together key decision-makers across financial institutions and the real economy to discuss issues including facilitating transition and adaptation financing. The conference covered topics such as the role of governments, businesses, and financial institutions in enabling the net zero transition, accelerating the phasing out Asia’s coal-fired power plants through transition credits, and private finance for climate adaptation. At the conference, MAS Managing Director Mr Chia Der Jiun spoke about the need to sustain collective commitment and action, strengthen disclosures, and close financing gaps through supporting the de-risking and viability of transition financing.