The Monetary Authority of Singapore (MAS) has announced a $2 billion green investments programme (GIP) to drive growth in sustainable finance in the country.
Singapore's central bank intends the GIP to stimulate the development of a strong and diverse financial ecosystem for green efforts.
This comes in the wake of the announcement of a green finance action plan by Ong Ye Kung, Singapore's minister for education and MAS board member.
MAS will determine fund managers' commitment to driving green efforts - managing environmental risk and stimulating growth in green markets - and place funds with them on that basis.
MAS' first investment as part of this programme will be a $100m placement in the Bank for international Settlements' green bond fund.
As reported by Environmental Finance, Ong describes the GIP as the "right thing to help reduce carbon emissions and promote sustainable development in Asia and globally".
He adds: "We must dare to believe that we can bring about growth that is sustainable. It means making a quantum leap in improving energy efficiency, shifting the energy mix, including investing in renewable energy."
Ong believes that Singapore, as a leading financial centre, should be leading the way in green and sustainable efforts, despite its small size and contribution to global carbon emissions.
These stand 0.1% of the world's total according to Singaporean ministry for the environment.
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