SG launches new initiative to support Asia’s net-zero transition

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The Monetary Authority of Singapore (MAS), the city-state’s central bank, has unveiled a new strategy to support Asia’s transition to a low-carbon economy with financing.

The Finance for Net Zero (FiNZ) Action Plan covers transition finance, which funds projects or activities that reduce carbon emissions in sectors such as power generation, buildings, and transportation. It also builds on the Green Finance Action Plan launched by MAS in 2019, which focuses on financing for low-carbon and climate-resilient development.

Lawrence Wong, the city-state’s deputy prime minister and minister for finance, launched the FiNZ Action Plan at the Sustainable and Green Finance Institute of the National University of Singapore yesterday.

MAS said the new initiative will help Singapore play a key role in catalyzing Asia’s net-zero transition and decarbonization activities. It will also enhance the city-state’s position as a leading green finance hub in Asia.

For example, MAS will set aside S$15 million (US$11.2 million) over the next five years to expand the scope of its sustainable bond and loan grant schemes to include transition bonds and loans.

MAS will also develop carbon services and carbon credits markets in Singapore and the region.

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Currency converted from SG dollar to US dollar: US$1 = S$1.33.