The Monetary Authority of Singapore (MAS) has launched the Finance for Net Zero (FiNZ) Action Plan to mobilize financing and support Asia’s net-zero transition and decarbonization activities in Singapore and the region, as reported by Strait Times on April 20. Building upon MAS’s Green Finance Action Plan launched in 2019, the FiNZ initiative incorporates transition finance, which refers to investment, lending, insurance, and related services to progressively decarbonize areas such as power generation, buildings, and transportation.
The FiNZ action has four strategic objectives. First, it aims to promote consistent, comparable, and reliable climate data and disclosures to guide financial market participants’ decision-making and prevent greenwashing. It will work with the Singapore Exchange and other agencies on a road map for key financial institutions and listed companies to align their climate disclosures with the International Sustainability Standards Board’s (ISSB) standard. Secondly, it seeks to partner with financial institutes to foster sound environmental risk management practices and deepen climate scenario analysis and stress testing to identify climate-related financial risks. Additionally, it intends to collaborate with international partners, such as the International Energy Agency (IEA), to devise credible transition plans for financial institutions. Furthermore, MAS will promote innovative and credible green and transition financing solutions and markets to support decarbonization efforts. Specifically, it plans to expand the scope of its sustainable bond and loan grant schemes to include transition bonds and loans, while formulating rules to mitigate the risk of “transition-washing”. It has allocated SGD15m (USD11.2m) over the next five years until the end 2028 for the enhanced grant schemes.