Singapore’s whole-of-government initiative to establish a robust ecosystem of policies and incentives for green innovation has facilitated the development of its national sustainable finance taxonomy.
Named the Singapore-Asia Taxonomy, it banks on the development narrative of Asian economies, while drawing reference from the European, Malaysian, and Chinese Taxonomies to ensure interoperability. Singapore’s Green Finance Industry Taskforce (GFIT), convened in 2019 to develop the domestic taxonomy for Singapore, and it is plausible that the Singapore-Asia Taxonomy will closely align with the Asean Taxonomy.
To better prepare for upcoming developments, Singapore-based financial institutions could monitor policy direction and trends on public debt issuance, such as the alignment of the Singapore Green Bond Framework with the national taxonomy. Singapore, largely reliant on natural gas for its own energy requirements must find a sweet spot in rebalancing its energy mix while meeting both its long-term economic and climate goals. Interestingly, being a key node in the global Liquefied Natural Gas (LNG) industry implies that featuring LNG supply chain investments in the Singapore-Asia taxonomy to facilitate the region’s energy transition would benefit Singapore’s economy.
As socio-economic conditions evolve in Asia, the Singapore-Asia Taxonomy is expected to adapt to new knowledge frontiers and technologies that not only mitigate climate change but continuously address biodiversity loss and support communities at risk.
Click here to read the original article published by Eco-Business.
Please give your feedback on this article or share a similar story for publishing by clicking here.
