The Monetary Authority of Singapore is working with the US International Finance Corporation to accelerate the growth of green bond markets in Asia.

A recently signed MOU between the two bodies is designed to encourage green bond issuances by financial institutions in Asia in two ways:

• by making financiers more aware of the issues surrounding green finance through capacity building programmes; and
• by promoting the use of internationally recognised green bond standards and rules.

The ultimate aim is to reverse global warming, according to Vivek Pathak, IFC’s director for East Asia and the Pacific. Another aim is to help make Singapore the chief financial hub of Asia, as low-carbon investment is expected to burgeon as an asset class. Asia now contributes about one-quarter of global green bond issuances every year.