During the launch of the Sustainable and Green Finance Institute at the National University of Singapore, Mr Lawrence Wong, Deputy Prime Minister and Minister for Finance, as well as the Deputy Chairman of the Monetary Authority of Singapore (MAS), announced the Finance for Net Zero (FiNZ) Action Plan. This plan aims to mobilize financing to facilitate Asia’s transition to net-zero emissions and decarbonisation in Singapore and the region. It builds on MAS’ Green Finance Action Plan of 2019 and includes transition finance, which involves investments, lending, insurance, and related services to gradually reduce carbon emissions in areas such as power generation, buildings, and transportation.
The FiNZ Action Plan has four strategic outcomes. Firstly, MAS will promote consistent, comparable, and reliable climate data and disclosures to help financial market participants make informed decisions and avoid greenwashing risks. Secondly, MAS will work with stakeholders to enhance interoperability of taxonomies across jurisdictions to promote cross-border green and transition financing flows. Thirdly, MAS will engage with financial institutions to foster sound environmental risk management practices and develop credible transition plans based on science-based decarbonisation pathways. Finally, MAS will promote innovative and credible green and transition financing solutions and markets to support decarbonisation efforts and climate risk mitigation.
To achieve these outcomes, MAS will continue to scale Green FinTech solutions and invest in developing the skills and capabilities of the Singapore workforce. Additionally, MAS will expand the scope of its sustainable bond and loan grant schemes, extend the Insurance-Linked Securities Grant Scheme, and scale blended finance in partnership with the private sector and philanthropic foundations. The FiNZ Action Plan sets out MAS’ strategies to facilitate the transition to a low-carbon economy, promote sustainable finance, and mitigate climate risks