SINGAPORE (Nov 11): The Monetary Authority of Singapore (MAS) is setting up a US$2 billion ($2.7 billion) green investments programme (GIP) to invest in public market investment strategies that have a strong green focus.
According to MAS, the project will help to support the Singapore financial centre in promoting environmentally sustainable projects and mitigating climate change risks in Singapore and the region.
Under the GIP, 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.
Selected managers will have to demonstrate a firm commitment to deepening their green investment capabilities across functions such as research, policy and portfolio management, and stewardship.
“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,” says MAS.
The GIP is a major segment of the green finance action plan announced by Tharman Shanmugaratnam, Senior Minister and Chairman of MAS, at the 2019 Singapore FinTech Festival (SFF) x Singapore Week of Innovation and TeCHnology (SWITCH).
Monetary Authority of Singapore board member Ong Ye Kung, who is also the education minister, said that the GIP also supports MAS’s efforts to generate sustainable long-term returns on its investment portfolio.
“It complements our broader range of initiatives to accelerate the growth of Singapore’s green finance ecosystem,” said Ong who delivered the keynote speech at the SFF x SWITCH on Monday.
He added that as part of the GIP, MAS will also allocate US$100 million to the Bank for International Settlements’ Green Bond Fund, in support of its global green finance initiatives.
MAS’s first investment under the GIP will be a US$100 million placement in the Bank for International Settlements (BIS)’ Green Bond Investment Pool (GBIP).
