IFC, a member of the World Bank Group, and the Monetary Authority of Singapore (MAS) have announced that they have today signed a Memorandum of Understanding (MOU), agreeing to work together to accelerate the growth of green bond markets in Asia. The MOU marks the start of a closer collaboration between MAS and IFC to jointly advance the green finance agenda.
Under the MOU, IFC and MAS will encourage green bond issuances by financial institutions (FIs) in Asia in two ways:
- enhance the awareness and knowledge of professionals working in FIs on green finance issues through capacity building programmes; and
- promote the use of internationally recognised green bond standards and frameworks.
Addressing climate change will require innovative, high impact financial solutions that mobilize the private sector,” said Mr. Vivek Pathak, IFC’s Director for East Asia and the Pacific. “Through this collaboration with MAS, we hope to strengthen financial institutions’ awareness of green bond issuances and help build capacity for decision makers and banks. We believe Singapore, as the rising financial hub of Asia, is well placed to catalyze the funding of low carbon investment and financing in the region and be at the forefront of this growing asset class.
Mr. Ng Yao Loong, Assistant Managing Director, Development & International Group, MAS, added:
Green bonds are gaining traction in Asia. The region now contributes about a quarter of global green bond issuances annually. MAS is pleased to partner IFC to help promote Asia’s green bond journey. We will also provide funding support through the MAS Green Bond Grant Scheme and various financial training schemes.
The signing of the MOU took place on the sidelines of the IFC – Environmental Finance Green Bonds Asia Conference in Singapore. The event saw more than 250 attendees from key Asian financial institutions gather for in-depth discussions on ways to scale up green bond issuances in Asian emerging markets.