The launch of the Singapore Sustainable Finance Association (SSFA) marks a significant milestone in Singapore’s journey to becoming a leading center for sustainable finance in Asia. In his keynote speech, Mr. Chia Der Jiun, Managing Director of the Monetary Authority of Singapore (MAS), highlighted the nation’s progress, ambitious goals, and the crucial role of collaboration in achieving net-zero ambitions.

Key Impact Points:

Singapore’s Impressive Growth:

• From pioneering green bond issuances to establishing a vibrant carbon ecosystem and attracting sustainability research hubs, Singapore has come a long way in just a decade.
• It boasts the largest market for sustainable bonds and loans in ASEAN, with over S$30 billion originated in 2022 alone.
• Singapore leads in climate risk financing instruments and houses a robust talent development ecosystem for the sector.

Leading Change and Seeding Solutions:

• MAS has actively shaped international standards, championed innovative financing approaches, and developed the world’s first “transition” category taxonomy to cater to Asia’s specific needs.
• Initiatives like supervisory expectations for transition planning and guidance for financing coal plant phase-out showcase Singapore’s commitment to driving positive change.

Building on Strengths: Standards, Solutions, and Skills:

• Mr. Chia identified three key areas for further growth: Standards for clarity and credibility, Solutions for mobilizing private capital, and Skills development for a future-proof workforce.
• Initiatives like ESG disclosure guidelines, industry codes of conduct, and sectoral decarbonization pathways exemplify MAS’ commitment to robust standards.
• Blended finance, carbon markets, and transition credits are explored as innovative solutions to unlock financing for marginally bankable projects.
• Investing in skills development through the Jobs Transformation Map and collaborating with IBF and Workforce Singapore will ensure a skilled workforce for the evolving landscape.

SSFA: A Platform for Collaboration:

• The SSFA is envisioned as a crucial platform for collaboration between the financial sector, industry players, and government agencies.
• It will play a vital role in developing best practices, fostering innovative solutions, and promoting skills development, ultimately propelling Singapore’s sustainable finance ambitions forward.

Related Article: IFC, MAS, and Temasek Unite for Sustainable Infrastructure Development in Asia

Key Takeaways:

• Singapore is a leader in Asia’s sustainable finance landscape, with a proven track record and ambitious goals.
• Collaboration through the SSFA is crucial for further growth and achieving net-zero objectives.
• Continued focus on standards, innovative solutions, and skills development will ensure Singapore’s continued success in this critical sector.