The Monetary Authority of Singapore has set up a $2 billion green investment program to fund public market investment strategies that have a strong green focus.
The green investment program (GIP), a major prong of the green finance action plan announced by MAS, serves to support the Singapore financial center in promoting environmentally sustainable projects and mitigating climate change risks in the country and the region.
The GIP aims to foster the growth of a strong and diverse ecosystem of green financing capabilities in Singapore. «MAS will place funds with asset managers who are committed to drive regional green efforts out of Singapore and contribute to MAS’ other green finance initiatives including developing green markets and managing environmental risks,» said MAS Board member Ong Ye Kung, who was speaking at the 2019 Singapore FinTech Festival (SFF) x Singapore Week of Innovation and TeCHnology (SWITCH).
Criteria for Selection
«We are also looking for managers who can demonstrate their capabilities in incorporating environmental considerations into their investment process and actively directing capital towards investments that have a better green profile. The green capabilities and experience of the team managing the strategies will be a key part of the evaluation,» said Ong.
MAS’ first investment under the GIP will be a US$100m placement in the Bank for International Settlements (BIS)’ Green Bond Investment Pool (GBIP). Together with other participating central banks, MAS hopes that this initiative will help catalyze further deepening of the green bond market.
