The task force aims to deepen bilateral cooperation in green and transition finance, with a focus on facilitating greater public-private sector collaboration for a low-carbon future in the region.
GFTF plans to co-develop a set of financial standards, products, technologies, and definitions to lower carbon footprints. The task force will enable public-private participants from China and Singapore to collaborate on concrete initiatives that will catalyze capital flows to support a credible and inclusive transition to a low carbon future for their countries and the region.
MAS’ assistant managing director and chief sustainability officer, Gillian Tan, reiterated the importance of the task force in strengthening sustainability bond market connectivity, which includes two-way access to green and transition bond products. This will allow MAS and PBC to find common ground for taxonomies and definitions with respect to each other’s existing transition activities.
In addition, GFTF’s technology initiative will see the involvement of MetaVerse Green Exchange, a licensed crypto exchange from Singapore, and Beijing Green Exchange, a Beijing municipal government-approved company, to help facilitate sustainable finance adoption. The two companies are also tasked with piloting digital green bonds with carbon credits.
Furthermore, Chinese banks are reportedly opening bank accounts for regulated crypto companies, with several acting as a payment layer for the crypto platforms. The Wall Street Journal has reported that the state-owned Bank of Communications is in talks to open accounts for regulated companies, while Hong Kong’s largest virtual bank, ZA Bank, will act as the settlement bank for the crypto companies.
All of these efforts show a strong push towards a low-carbon future in the region, with the task force serving as a catalyst for greater collaboration between public and private sectors. It is clear that China and Singapore are taking proactive steps towards sustainability and green finance, setting an example for other countries to follow.
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