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Singapore launches new measures for green finance

Out-Law News | 24 May 2021 | 7:16 am | 1 min. read

A Singapore financial taskforce has launched a guide for climate-related disclosures and a framework for green trade finance.

The measures aim to accelerate green finance in Singapore through improving disclosures and fostering green solutions, said a MAS statement.

The Green Finance Industry Taskforce (GFIT), which was set up by MAS in February, issued a detailed implementation guide for climate-related disclosures which outlines specific disclosure practices for banking, insurance and asset management sectors, including different ways which individual sector could take.

GFIT issued a new framework for helping banks to assess qualified green trade finance deals, providing specific guidance on suggested industry certifications for trade finance activities to qualify as green.

The taskforce also published a whitepaper outlining suggestions and setting out a road map for expanding green finance in the real estate, infrastructure, fund management and transition sectors.

GFIT will work with industry associations, financial institutions and businesses to develop and implement the recommended proposals.

From May till April 2022, the taskforce will launch a series of workshops for financial institutions and corporates to build capacity in green finance.

Mark Tan of Pinsent Masons MPillay, the Singapore joint law venture between MPillay and Pinsent Masons, the law firm behind Out-Law, said: “The launch by the GFIT of the various measures and initiatives to enhance climate-related disclosures as well as improve green solutions and capabilities is a welcome step forward. Such measures will help enhance the ability of financial institutions to develop and implement green solutions more effectively, and assist Singapore in its transition towards a low carbon economy, as well as provide greater comparability and consistency in climate-related disclosures, which will in turn assist investors and other market participants in making informed decisions when investing in these areas.”

GFIT includes representatives from financial institutions, businesses, non-governmental organisations, and associations in financial industry.