Singapore's Monetary Authority has announced a plan to broaden its focus from green finance to include transition finance by defining clear guidelines, encouraging innovation, and offering additional grants.
The authority plans to develop sustainable debt markets with green and transformational solutions, enhance data quality and disclosure of information on environment, society, and governance, and ensure that financial institutions have reliable transition plans in place.
MAS will expand its sustainable bond and loan grant schemes to include transition bonds and loans while ensuring that they align with internationally recognized taxonomy and transition finance principles. Safeguards will be put in place to reduce the risk of "transition-washing."
