Let me offer four suggestions. First, we must help corporates understand the value of green financing. Singapore financial institutions have been partnering local authorities in Chongqing to build capabilities in green finance through workshops and online seminars. Second, we must ensure common understanding of what constitutes green or transition activities. In Singapore, an industry taskforce is developing a taxonomy that encompass green and transition activities. We are keen to collaborate with partners in China to identify commonalities in our taxonomies to unlock more cross-border sustainable financing flows. Third, we must enable corporates which want to improve their sustainability performance obtain cheaper financing in the form of sustainability-linked bonds and loans. 2/3  BIS central bankers' speeches  Sustainability loans can provide discounts on the lending rate if predefined sustainability performance targets are met. MAS’ grant schemes can help to defray the costs that borrowers incur to certify the fulfilment of sustainability targets. Fourth, we must explore innovative policy measures to facilitate qualified Chinese enterprises to issue green bonds overseas. For example, corporates from Chongqing or the broader Western Region could be allowed expedited approval for green bond issuances in Singapore. This could be done within specified limits and perhaps something akin to a dedicated green foreign debt quota for Chongqing. A growing number of Chongqing and Western Region companies are tapping Singapore to obtain green financing. Just last month, Chongqing Three Waters Conservancy and Power Co. signed an MOU with Chongqing Rural Commercial Bank to explore a potential RMB 1 billion green bond issuance in Singapore.
There are more such deals in the pipeline, and I urge Chinese companies issuing green and sustainability bonds or taking green loans to seriously consider doing so in Singapore. I look forward to our continued cooperation with Chongqing. I am confident that our initiatives under the CCI will help build a more resilient, digital and sustainable future for our two countries. 3/3  BIS central bankers' speeches