Compliance

Compliance Corner: MAS, Green Finance Industry Taskforce

Editorial Staff, 21 May 2021

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The latest compliance news: regulatory developments, punishments, guidance, permissions and new product and service offerings.

A group of financial industry figures convened by Singapore’s main industry regulator have rolled out “green finance” ideas to speed up this business area in the Asian city-state.

This week, the Green Finance Industry Taskforce issued a guide for climate-related disclosures by financial institutions; a framework to help banks assess eligible green trade finance transactions; and a white paper on scaling green finance in the real estate, infrastructure, fund management and transition sectors.

GFIT will also launch a series of workshops for financial institutions (FIs) and corporates to build capacity in green finance, with support from its industry association partners, the Monetary Authority of Singapore said.

The guide on implementing climate-related disclosures sets out best practices that are aligned with recommendations of the Financial Stability Board’s Task Force on Climate-Related Financial Disclosures (TCFD). 

The framework for green trade finance and working capital provides a principles-based approach for banks to assess eligible green trade finance transactions, and specific guidance on recommended industry certifications for trade finance activities to qualify as green. Banking groups HSBC and UOB have piloted four green trade finance transactions for renewable energy, recycling, agriculture and farming activities, to support businesses in greening their supply chains.

GFIT has also published a white paper outlining recommendations and laying out a roadmap to scale green finance in the real estate, infrastructure, fund management and transition sectors. These include a green securitisation platform to scale sustainable infrastructure investments in the region, and recommendations for the use of transition bonds and loans in the shipping, oil and gas, and automotive sectors to support more sustainable practices. In its next phase of work, GFIT will partner with industry associations, financial institutions and businesses to develop and implement the recommended proposals.

GFIT will launch a series of workshops and e-learning modules from May 2021 to April 2022 for FIs and corporates, the regulator said. 

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