The industry-led Green Finance Industry Taskforce (GFIT), brought together by the Monetary Authority of Singapore (MAS), is currently conducting a consultation exercise to develop a taxonomy which will ultimately define what projects and companies should qualify for green finance. By taking the initiative to create a common language for all financial institutions in ASEAN, Singapore is asserting its ambition to become the green finance hub of Asia.
This issue examines some of the challenges in bringing Singapore’s green taxonomy in line with European standards, the Paris Agreement targets and the United Nations’ Sustainability Development Goals, and makes suggestions for a more effective and ambitious taxonomy.