Expanding the green conversation

REGULATORY support is needed in building Singapore as a green finance hub.

Singapore is primed to be the go-to hub in sustainable development with the government accelerating the move in a series of steps. Driving this change requires a common language about what it means to go green in terms of finance. The centrepiece of the government's initiatives is the Green Finance Industry Taskforce (GFIT), convened in January 2021 by the Monetary Authority of Singapore (MAS) to determine a taxonomy to identify activities that can be considered green or in the process of transitioning to green.

Having this common language is crucial to combat "greenwashing" where companies present inaccurate or exaggerated claims of being environmentally sound. GFIT continues to make inroads by launching a guide for climate-related disclosures and a framework for green trade finance in May this year.