In a bid to strengthen their cooperation in green and transition finance, China and Singapore have established the China-Singapore Green Finance Taskforce (GFTF). This collaboration, spearheaded by the Monetary Authority of Singapore (MAS) and the People’s Bank of China (PBC), aims to develop financial standards, products, technologies, and definitions to support a low-carbon future in the region.
Facilitating Collaboration and Concrete Initiatives
The GFTF is expected to facilitate greater public-private sector collaboration and create concrete initiatives that will catalyze capital flows to support a credible and inclusive transition to a low-carbon future for both countries and the region. Participants from China and Singapore will co-develop the necessary initiatives, which are critical in ensuring that both countries’ financial sectors remain sustainable in the long term.
Focus on Taxonomies, Definitions, and Sustainability Bond Market Connectivity
Initially, the task force will focus on finding common ground for taxonomies and definitions regarding each other’s existing transition activities. It will also strengthen sustainability bond market connectivity, which includes two-way access to green and transition bond products. This initiative aims to ensure that sustainable finance adoption is more widely accepted and accessible to all stakeholders in the region.
Technology Initiative: MetaVerse Green Exchange and Beijing Green Exchange
The GFTF’s technology initiative will involve MetaVerse Green Exchange, a licensed crypto exchange from Singapore, and Beijing Green Exchange, a Beijing municipal government-approved company. The two companies will help facilitate sustainable finance adoption and pilot digital green bonds with carbon credits. This initiative aims to provide more accessible and user-friendly digital platforms for investors and other stakeholders, thereby promoting sustainable finance adoption.
Chinese Banks Open Accounts for Regulated Crypto Companies
In a related development, Chinese banks are reportedly opening bank accounts for regulated crypto companies, with several acting as a payment layer for the crypto platforms. The state-owned Bank of Communications is in talks to open accounts for regulated companies. Additionally, Hong Kong’s largest virtual bank, ZA Bank, will act as the settlement bank for crypto companies, according to a report by the Wall Street Journal. This initiative aims to provide more opportunities for crypto companies to access the necessary funding for their operations while ensuring that the financial system remains safe and stable.
The collaboration between China and Singapore in the field of green and transition finance is a significant step towards achieving a low-carbon future in the region. The GFTF’s initiatives, particularly the technology initiative involving MetaVerse Green Exchange and Beijing Green Exchange, will provide more accessible and user-friendly digital platforms for investors and other stakeholders, thereby promoting sustainable finance adoption. The opening of bank accounts for regulated crypto companies by Chinese banks is also a welcome development, providing more opportunities for crypto companies to access the necessary funding for their operations.