The global climate transition is navigating a more complex environment, with geopolitical shifts, funding gaps, and energy security pressures creating competing priorities even as climate risks intensify. Against this backdrop, MAS has worked closely with industry stakeholders over the past year to strengthen financial sector resilience against climate risks, mobilise capital for Asia’s transition, build up market capabilities, and advance its own sustainability efforts.

Significant progress has been made through several key initiatives including:

Climate Resilient Financial Sector

• Issued Guidelines on Environmental Risk Management – Transition Planning (TPG) in March 2026 to strengthen financial institutions’ management of climate-related risks and support risk-proportionate transition planning, providing greater clarity for investors to assess risk and allocate capital with confidence.

A Vibrant Sustainable Finance Ecosystem

• Advanced the Financing Asia’s Transition Partnership (FAST-P), with the Green Investments Partnership (GIP) expanding to US$800 million in total participation at second close in May 2026, up from US$510 million at first close. FAST-P has deployed capital into sustainable infrastructure projects and expanded partner participation across FAST-P’s industrial transformation and energy transition financing programmes.

• Published the Transition Credits Coalition (TRACTION) Final Report and launched a Statement of Support backed by over 20 public and private entities at COP30, to provide a practical roadmap and build market confidence for financing high-integrity energy transition credits arising from the early retirement of coal plants.

• Launched the Financial Sector Carbon Market Development Grant. This helps to build financial institutions’ capabilities, reduce implementation costs, and strengthen market integrity and confidence in voluntary carbon markets.

• Initiated a review of the Singapore-Asia Taxonomy (SAT) technical screening criteria for selected sectors, including energy, maritime and data centres, to reflect evolving technological developments, updated scientific data, and practical implementation considerations for market participants.

A Sustainable Organisation

• Reduced MAS’ operational carbon footprint through energy efficiency measures, including upgrading the central air-conditioning plant at Currency House, which yielded a 30% reduction in electricity consumption, and deploying hybrid cooling across 75% of MAS offices to further reduce Scope 2 carbon emissions.

• Continued initiatives to support the reduction of Scope 3 (Outsourced Currency Operations) carbon emissions. These included promoting the use of Fit notes and partnering with banks to expand their network of Fit notes ATMs, contributing to increased uptake of Fit notes for festive gifting in 2026.

A Climate Resilient Investment Portfolio

• Fully shifted the Climate Transition Programme (CTP) equities portfolio to active management, making steady progress towards reducing its carbon intensity by up to 50% by FY2030.

• External fund managers maintained stewardship efforts, including engagements with portfolio companies on material ESG issues.