International Experiences in Green Finance Development

30 International Experiences in Green Finance Development: Lessons for Hong Kong Located in Southeast Asia and independent since 1965, Singapore is a small city-state surrounded by larger neighbors. It has been facing a problem of survival since its establishment. As a leading Asian financial center, the transformation of green finance is a must for the city-state. 4.1 Singapore’s Government is Central to Promoting Green Finance The Singapore government is playing a dominant leading role in driving the transition. It aims to be on the front line of green finance and has set strategic goals for Singapore and positioned it practically according to its geographical location and industry prospects. The government aims to build a climate-resilient financial sector and to achieve this goal, the government has launched progressive policies (Table 5) and set up an institutional mechanism to lay the foundation for transition. This mechanism has provided financial support, set standards nurtured talent and solved data flow and technical issues for green finance through developing fintech. Table 5: Green Finance Policy Development in Singapore Time Policy Content Institution 2017 Sustainable Bonds Grant Scheme Encouraged the issuance of green, social and sustainable bonds to fund issuers’ external review costs. Renewed in 2023 to provide S$125,000 to fund external review. Monetary Authority of Singapore 2018 Insurance- linked Securities Grant Scheme Additional risk financial solutions for risk takers to transfer risk to capital market investors. Monetary Authority of Singapore 2019 Green Finance Action Plan Enhanced the financial industry’s ability to respond to environmental crises; developed green financial solutions and sustainable economic markets; provided technical support for efficient and credible sustainable financial information flow; strengthened sustainable financial knowledge and capacity building. Monetary Authority of Singapore