On 21 April 2023, the Monetary Authority of Singapore (“MAS“) and the People’s Bank of China (PBC) announced the establishment of the China-Singapore Green Finance Taskforce (“GFTF“).
The GFTF is co-chaired by MAS’ Assistant Managing Director (Development and International) and Chief Sustainability Officer, Ms Gillian Tan, and Chair of the China Green Finance Committee, Dr Ma Jun. The members of GFTF comprises senior representatives and sustainable finance experts from Singapore and China’s financial institutions, and green FinTech companies.
To better meet the region’s needs as it transitions to a low carbon future, the GFTF seeks to:
- provide a platform for knowledge exchange;
- enhance bilateral cooperation between China and Singapore in green and transition finance; and
- facilitate greater public-private sector collaboration.
At the inaugural meeting held in Chongqing on 21 April 2023, the GFTF discussed joint initiatives that aim to scale up green and transition financing flows between China, Singapore, and the region.
Initially, the GFTF will establish three workstreams focusing on the following priority areas:
(a) Taxonomies and Definitions. Under the International Platform on Sustainable Finance (“IPSF”), MAS and PBC will collaborate to:
- achieve interoperability between the China and Singapore taxonomies;
- enhance the use of the IPSF’s Common Ground Taxonomy. The IPSF’s Common Ground Taxonomy provides an in-depth comparison of the existing taxonomies for environmentally sustainable investments and puts forward areas of commonality and differences between the European Union and China’s green taxonomies; and
- deepen understanding of transition activities defined by China and Singapore.
(b) Products and Instruments. China International Capital Corporation and the Singapore Exchange will establish a workstream to strengthen sustainability bond market connectivity between China and Singapore. This includes the issuances of, and mutual access to, green and transition bond products in China and Singapore.
(c) Technology. A workstream will be established by Beijing Green Exchange and Metaverse Green Exchange that leverages technology to facilitate sustainable finance adoption. This will include the piloting of digital green bonds with carbon credits.
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