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Singapore introduces framework for sovereign green bonds ahead of inaugural issuance

Posted on June 10, 2022June 10, 2022 by dishanth

Singapore on Thursday (Jun 9) published the governance framework for sovereign green bonds, ahead of the first such issuance expected in the next few months.

This comes as Singapore moves to develop the green finance market and make green finance a driving force for sustainability.

The Singapore Green Bond Framework sets out guidelines for public sector green bond issuances under the Significant Infrastructure Government Loan Act 2021 (SINGA), said the Ministry of Finance (MOF) and the Monetary Authority of Singapore (MAS) in a media release.

It covers the Government’s intended use of green bond proceeds, governance structure to evaluate and select eligible projects, operational approach to manage green bond proceeds, and commitment to post-issuance allocation and impact reporting.

In addition to providing the foundation for green bonds issued by the Government, the framework will also serve as a reference for statutory boards that issue their own green bonds.

The key principles considered in the development of the framework were alignment with internationally recognised market principles and standards; stringent governance and oversight of project selection and allocation of proceeds; and technical screening to evaluate and identify green projects, MOF and MAS said.

Eligible expenditures

At Budget 2022, Finance Minister Lawrence Wong announced that the Government would issue S$35 billion of green bonds by 2030 to fund public sector green infrastructure projects.

Proceeds from these bonds, which will be issued under the new framework, will be used to finance costs associated with the Singapore Green Plan 2030, MOF and MAS said.

In turn, the eligible green projects are expected to facilitate the transition to a low-carbon economy in Singapore and contribute to the climate-related and environmental goals set out by the Singapore Government.

The categories of “eligible green expenditures” are:

Renewable energy
Energy efficiency
Green building
Clean transportation
Sustainable water and wastewater management
Pollution prevention, control and circular economy
Climate change adaptation
Biodiversity conservation and sustainable management of natural resources and land use

Source CNA

Budget 2022: More electric vehicle charging points closer to homes as part of Singapore Green Plan

Posted on February 24, 2022 by dishanth

SINGAPORE: From building more electric vehicle charging points to issuing more green bonds to fund public sector green infrastructure projects, Singapore is taking steps to “move decisively” towards a net-zero world.

Delivering his Budget speech on Friday (Feb 18), Finance Minister Lawrence Wong said the path towards net-zero will entail “significant” economic restructuring and changes in how people live and work in future.

“All of us – the public, businesses, the government – will face difficult choices,” he said. “Costly investments may be required, for example, to import or generate low carbon energy.”

“But now is the time when we must move decisively towards the future of a net-zero world. This will allow us to tap fully on the many exciting possibilities in this green transition.”

GREENING SINGAPORE’S TRANSPORT

To make transport greener, Singapore will accelerate the adoption of electric vehicles (EVs).

During Budget 2020, Deputy Prime Minister and then-Finance Minister Heng Swee Keat announced that the country would gradually phase out internal combustion engine vehicles by 2040.

Since then, the Government has provided “significant” incentives for EV adoption, said Mr Wong.

Last year, the EV share of new car registration jumped to around 4 per cent, up from 0.2 per cent in 2020, he added.

To keep up the momentum, Mr Wong announced that more EV charging points will be built closer to where people live.

“To do this, infrastructure upgrades will be necessary, and the financing can come from green bonds,” he said.

DEVELOPING A ROBUST GREEN FINANCE MARKET

Another area of focus for the country is green finance, which is currently one of the fastest-growing segments in the financial services sector. Singapore accounts for close to half of the ASEAN green bond and loan market.

“We aim to do more, so that banks and financial institutions will use Singapore as a base to develop their capabilities, and develop innovative green financial solutions to service their customers all over Asia and the world,” said Mr Wong.

To help develop a robust green finance market, Mr Wong announced that the government will issue S$35 billion of green bonds by 2030 to fund public sector green infrastructure projects. This is up from the S$19 billion of green bonds announced previously during last year’s Budget.

“This will include bonds issued by the government, as well as statutory boards. The government will also publish a Singapore Green Bond framework and issue its inaugural green bond later this year,” he added.

Source Channel News Asia