The immense financing needed to build a greener world can only be met through a combination of public and private capital. SINGAPORE’S GREEN FINANCE ACTION PLAN  Last year, the Monetary Authority of Singapore (MAS) launched a Green Finance Action Plan— to support a sustainable Singapore and to facilitate Asia’s transition to a sustainable future. As a champion of sustainable development and as an international financial centre in the heart of Asia, Singapore is well-placed to support Asia’s sustainability journey through Green Finance. Our vision is for Singapore to be the leading centre for Green Finance in Asia. The Green Finance Action Plan comprises four key thrusts— strengthen the financial sector’s resilience to environmental risks; develop green financial solutions and markets for a sustainable economy; harness technology to enable trusted and eﬀicient sustainable finance flows; and build knowledge and capabilities in sustainable finance. Let me elaborate on each of these. STRENGTHENING RESILIENCE TO ENVIRONMENTAL RISKS  First, strengthening the financial sector’s resilience to environmental risks. Climate change poses two key risks to financial institutions. First, physical risks arising from climate change – such as floods and rising sea levels damaging assets and properties, resulting in large insurance claims and reduced collateral values for bank loans. Second, transition risks arising from policy changes, technological advances, or shi s in consumer preferences that reduce demand for fossil fuels, thereby devaluing loans and investments with a fossil fuel exposure. These risks are not trivial and could well threaten the stability of the financial system.
In the upcoming Punggol Digital District, businesses will be connected to a network of sensors collecting real-time data on solar generation, building occupancy, rainfall and humidity; they can use this information to optimise their energy usage. We are working towards a Circular Economy, where resource usage is reduced and resources are re-cycled Singapore is the first country in the world to achieve circularity in the water sector. We collect every drop of used water, treat and purify it, and turn much of it into clean water again. Singapore is extending the circularity principle to other areas. We are experimenting with the use of treated incineration waste as construction materials for building roads. We are looking into transforming waste plastic into alternative fuels. We are recycling food waste into sustainable animal feed. Under the Zero Waste Masterplan, by 2030, Singapore aims to reduce by 30% the amount of waste per capita that we send to our landfills. We are positioning Singapore as a carbon services hub to complement Asia’s decarbonisation eﬀorts. There is good potential in Southeast Asia to generate carbon credits. Singapore can play a role in facilitating the financing of projects that reduce or remove emissions through these credits. A critical enabler for all these sustainability eﬀorts – in Singapore and across Asia – is Green Finance. https://www.mas.gov.sg/news/speeches/2020/harnessing-the-power-of-finance-for-a-sustainable-future  4/13  14/10/2020  “Harnessing the Power of Finance for a Sustainable Future”- Keynote Speech by Mr Ravi Menon, Managing Director, MAS, at the Finan…  Finance fuels the economy, shapes investment decisions, and drives action.