Singapore unveils green bond framework

The Singapore government has published the Singapore Green Bond Framework, a framework for governance of sovereign green bond issuances.

According to the Monetary Authority of Singapore (MAS), the framework details the Singapore government’s intended use of green bond proceeds, governance structure to evaluate and select eligible projects, operational approach to manage green bond proceeds and commitment to post-issuance allocation and impact reporting.

MAS remarked that the framework has been designed in alignment with internationally recognised market principles and standards. The authority said, “The framework is developed and structured in alignment with the core components and key recommendations of the International Capital Market Association (ICMA) Green Bond Principles 2021 and the ASEAN Capital Markets Forum ASEAN Green Bond Standards 2018.”

The Singapore government is also committing to annual post-issuance allocation reporting and impact reporting on environmental benefits and where possible, social co-benefits of the Eligible Green Expenditures – which provides transparency and accountability for investors and other interested parties.

The MAS said that proceeds from green bonds issued under the framework will be used to finance expenditures in support of the Singapore Green Plan 2030. This, MAS claims, facilitates the transition to a low-carbon economy in Singapore and advances the UN Sustainable Development Goals.

In order to support Singapore’s transition to a low-carbon economy and spur Singapore’s development as a green finance hub, the Singapore government has announced at its Budget this year the public sector will issue up to S$35m of green bonds by 2030.=

The Singapore government will be issuing its inaugural sovereign green bond under the SINGA in the coming bonds. These bonds will be used to finance nationally significant infrastructure which meet the green criteria under the framework.

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