Collaboration in Sustainable Finance
HM Treasury and the Monetary Authority of Singapore (MAS) announces collaboration in sustainable finance, aiming to expand financing and support the net-zero transition.
The UK Treasury and the Monetary Authority of Singapore co-organized the ninth UK-Singapore Financial Dialogue. The two parties plan to strengthen cooperation based on the agreement reached in September last year.
Related Post: Monetary Authority of Singapore Releases World’s First Transition Taxonomy
Sustainable Finance Collaboration Agreement
Last September, the UK and Singapore established a partnership on climate, sustainability, green economy and energy cooperation, aiming to achieve the goals of the Paris Agreement and the Glasgow Climate Pact, strengthen climate resilience, prevent biodiversity lost and create new jobs. These collaborations include:
- Reiterate its commitment to support global climate action under the United Nations Framework Convention on Climate Change (UNFCCC), fulfill its obligations under the Paris Agreement, and strive to achieve the 1.5 degrees Celsius warming target and the 2050 net zero goal.
- Commit to strong climate action and fulfill obligations under multilateral environmental agreements.
- Establish the United Kingdom-Singapore Green Economy Framework to accelerate economic growth in the green sector, encourage decarbonization of economic activities, and develop low-carbon energy technologies, green transportation and other projects.
- Establish a Green Skills Corridor to cultivate talents in sustainable finance.
- Establish strategic partnerships to accelerate regional investment in sustainable infrastructure and strengthen energy security and resilience.
- Promote regional natural and biodiversity achievements, implement the Kunming-Montreal Global Biodiversity Framework, and explore cooperation on blue economy and blue carbon initiatives.
Strengthen Collaboration in Sustainable Finance
The UK Treasury and the Monetary Authority of Singapore plan to continue to strengthen collaboration in sustainable finance in the following three areas:
- Developments in transition planning: Comparable and complete transition plans are critical to scaling up transition financing. The UK updates its progress on the Transition Plan Taskforce disclosure framework following its publication last October. The Monetary Authority of Singapore shares its consultation paper on Transition Planning Guidelines to help financial institutions manage the expected impacts of transition and global warming. The two parties also discuss works by the Financial Stability Board, the Basel Committee’s Task Force on Climate-related Financial Risks, the International Organization of Securities Commissions and the Network of Central Banks and Supervisors for Greening the Financial System.
- Disclosure standards, ESG ratings and data products: The UK and Singapore reaffirm their commitment to implement the International Sustainability Standards Board’s sustainability standards to improve sustainability disclosures consistency, comparability and reliability. HM Treasury provides information on the Sustainability Disclosure Requirements. Both parties discuss about the voluntary code of conduct for ESG ratings and data products provides, and plan to strengthen cooperation through IOSCO’s Sustainable Finance Taskforce.
- Sustainable infrastructure and investment: The UK and Singapore believe that Asia has a large funding gap in green and transition financing, and plan to cooperate to develop and fund green finance and energy transition projects in the region and mobilize private capital. The Monetary Authority of Singapore introduces Financing Asia’s Transition Partnership, which brings together public, private and philanthropic sector partners to finance transition and marginally bankable green projects in Asia.
Reference:
UK and Singapore Strengthen Collaboration in Sustainable Finance and FinTech
