Despite global headwinds affecting climate action, Southeast Asia’s sustainable finance market has demonstrated resilience, with sustainable finance proceeds raised from bonds & loans in Southeast Asia increasing to record highs and growth outpacing that of other regions in 2024Business Times, Sustainable Finance in SEA to remain robust in 2025 despite Trump-led climate setback.  

The region’s low carbon transition continues to present significant economic opportunities. In Southeast Asia’s power sector, close to S$1.1 trillion in financing is estimated to be needed over the next decade to ramp up renewable energy capacity, upgrade existing power grid infrastructure and invest in battery storage systems. This demand is underpinned by the role of affordable energy in driving economic growth, a rise in electricity demand across end-use sectors and the increasing cost-competitiveness of renewable energy.

As a financial regulator, MAS’ risk-based guidance and supervisory engagement seek to be risk-proportionate, pragmatic and flexible. This enables financial institutions to bolster their resilience to environmental risks and finance the transition to a more climate-resilient economy, while also adapting their actions to changing global and local circumstances. As a financial sector developer, MAS’ strategies are aimed at ensuring financial institutions are able to support Singapore and the region’s transition through financing and other solutions. 

MAS has made progress on our sustainable finance initiatives across several fronts. Key initiatives that we launched at COP 29 last November include:

• Establishment of Financing Asia’s Transition Partnership (FAST-P)’s new Industrial Transformation infrastructure debt programme.  The Singapore Government has also pledged up to US$500 million as concessional capital, to match dollar-for-dollar concessional capital from other parties. 
• Publication of the Transition Credits Coalition (TRACTION)’s interim report which outlined insights and considerations on the use of transition credits to accelerate the early retirement of coal-fired power plants (CFPPs).
• Publication of the Multi-Jurisdiction Common Ground Taxonomy (M-CGT), jointly with the People’s Bank of China and the European Union Directorate-General for Financial Stability, Financial Services and Capital Markets Union under the International Platform of Sustainable Finance. The M-CGT enables financial institutions, corporates and investors to easily identify and assess activities that would be considered green activities in China, the EU and Singapore.

Earlier this year, MAS published an “Information Note on the Application of Singapore-Asia Taxonomy (SAT) in Financial and Corporate Sectors” which highlights the good adoption by banks and corporates in referencing the SAT in their sustainable finance frameworks and solutions. MAS also supported the Singapore Sustainable Finance Association’s publication of its “Guidance for Leveraging the Singapore-Asia Taxonomy in Green and Transition Financing” to scale green and transition finance.

As our sustainability efforts must be undergirded by a strong sustainable finance ecosystem with specialist capabilities, MAS continues to prioritise capacity building and workforce talent development.  

• Since the launch of the Sustainable Finance Jobs Transformation Map (JTM) last year, at least 4100 professionals have been trained through the IBF-accredited training courses as well as in-house courses offered within FIs. More than with 8200 IBF Skills Badges have been awarded, giving recognition to individuals who have completed IBF-accredited sustainable finance courses. 
  
  
• To build a pipeline of graduates with the relevant skills to meet industry demand in sustainable finance, the National University of Singapore Business School recently introduced an undergraduate specialisation in Sustainable Finance to equip its students with skill sets such as carbon accounting and sustainability risk management.
  
  
• MAS will continue to work closely with the financial industry to develop the ecosystem’s capabilities in emerging areas such as nature-related risks and opportunities. In collaboration with Cambridge Institute for Sustainability Leadership (CISL), the three local banks – DBS, OCBC, UOB – embarked on a project to enhance banks’ understanding of the economic and business impacts of nature loss and to build capacity in nature-related risk management. MAS also supported the publication of a whitepaper by Singapore Sustainable Finance Association on “Financing Our Natural Capital” that contextualises global frameworks to the region and provides practical steps on how FIs can start to incorporate nature into their business activity.

MAS will work in close partnership with industry stakeholders to stay the course in our sustainability journey. We will continue to develop Singapore’s sustainable finance ecosystem and encourage the development of innovative solutions to scale the financing needed for the region’s transition and build a sustainable and resilient future.

Gillian Tan
Chief Sustainability Officer