Singapore establishes framework to push for high quality green bonds
A committee will oversee the Singapore Green Bond Framework.
The Singapore Green Bond Framework was launched to achieve net zero goals, as well as make sure that green bonds issued by the public sector will be high quality, the Ministry of Finance (MOF) said.
In its document, MOF said the green bonds must comply with market practices in three ways: alignment with international guidelines and market best practices for green bond issuances, ministerial oversight of project selection and allocation of proceeds, and technical screening for green projects.
To oversee and approve decisions on green bonds under the framework, MOF has put up the Green Bond Steering Committee (GBSC), which is also tasked to design and maintain the framework, selection and evaluation of eligible green expenditures, management of green bond proceeds, and reporting on allocation and impact of green bonds issued.
READ MORE: How does Singapore plan to achieve a green economy?
The GBSC membership will be composed of senior government representatives in the Ministry of Finance, Monetary Authority of Singapore, Accountant-General’s Department, Ministry of Sustainability and the Environment, and Ministry of Transport.
Aside from this, the committee is supported by another working-level group, the GBSC Secretariat.
“The GBSC will review this Framework on a regular basis, including its alignment to updated versions of the ICMA Green Bond Principles and ASEAN Green Bond Standards as and when they are released, with the aim of adhering to market best practices,” read the MOF’s framework.
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