China and Singapore team up to scale green and transition financing

Major Asian economies, China and Singapore, have set up a task force to deepen bilateral cooperation in green and transition finance. The move is aimed at facilitating greater public-private sector collaboration for a low-carbon future in the region.ย 

The Monetary Authority of Singapore (MAS) announced the collaboration with the Peopleโ€™s Bank of China (PBC) in establishing the China-Singapore Green Finance Taskforce (GFTF). With GFTF, the duo aims to co-develop a set of financial standards, products, technologies and definitions to lower carbon footprints.

According to MASโ€™ assistant managing director and chief sustainability officer, Gillian Tan, public-private participants from China and Singapore will collaborate โ€œon concrete initiatives that will catalyze capital flows to support a credible and inclusive transition to a low carbon future for our countries and the region.โ€

For starters, the GFTF will allow MAS and PBC to find a common ground for taxonomies and definitions with respect to each otherโ€™s existing transition activities. The task force will also enable the countries to strengthen sustainability bond market connectivity, which includes two-way access to green and transition bond products.

GFTFโ€™s technology initiative will see the involvement of MetaVerse Green Exchange, a licensed crypto exchange from Singapore and Beijing Green Exchange, a Beijing municipal government-approved company, to help facilitate sustainable finance adoption. The two companies are also tasked with piloting digital green bonds with carbon credits.

Related: Crypto lender Babel gets extended creditor protection in Singapore

Chinese banks are reportedly opening bank accounts for regulated crypto companies, with several acting as a payment layer for the crypto platforms.

While Chinese state-owned Bank of Communications is in talks to open accounts for regulated companies, ZA Bank, Hong Kongโ€™s largest virtual bank will act as the settlement bank for the crypto companies, according to Wall Street Journal report.

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