Singapore Will Buy Credible Carbon Credits From Coal Plant Closures
Singapore is prepared to buy carbon credits generated when coal-fired power plants are retired early and replaced with cleaner energy sources, provided they meet standards of environmental integrity, said Senior Minister and Coordinating Minister for National Security Teo Chee Hean on Saturday (Dec 2).
Teo, who was delivering Singapore’s national statement at the United Nations climate change conference in Dubai, United Arab Emirates (UAE), said that the decision to offtake this new category of carbon credits – known as transition credits – is aligned with COP28’s focus on accelerating the energy transition, while ensuring sustainable socio-economic development.
This means that Singapore will be able to buy transition credits to meet its climate targets – called nationally determined contributions (NDCs) – once such credits are deemed to have sufficiently high integrity.
MAS Finalises Taxonomy on Sustainable and Transition Financing
The Monetary Authority of Singapore (MAS) has launched a key sustainable finance framework that defines eligible economic activities across eight sectors on Sunday (Dec 3).
Arriving after four rounds of public consultations over two years, the Singapore-Asia Taxonomy for Sustainable Finance sets criteria in the energy, real estate, transportation, agriculture and forestry or land use, industrial, information and communications technology, waste and circular economy, and carbon capture and sequestration sectors. These criteria determine whether an economic activity can qualify for sustainable or transition financing.
Announcing the launch of the final taxonomy on the sidelines of the United Nations climate change conference, Monetary Authority of Singapore managing director Ravi Menon said that the Singapore taxonomy is the first in the world to comprehensively define transition activities across eight sectors.
MAS, Temasek Ink MOU to Address Region’s Sustainable Infrastructure Financing Gap
The Monetary Authority of Singapore (MAS) and Temasek have signed a memorandum of understanding with Allied Climate Partners (ACP) and the World Bank’s International Finance Corporation (IFC) to address the financing gap for Asia’s sustainable development needs.
This will be done through the deployment of blended finance, mixing “both concessional capital from the philanthropic and public sectors, as well as private capital towards such projects”, said the four in a press statement on Sunday (Dec 3).
The group will also identify and develop a pipeline of investments in sectors including renewable energy and storage development, electric vehicle infrastructure, sustainable transportation, and water and waste management. This will help to “address climate finance gaps and increase the bankability of green and sustainable projects in Asia, with an initial focus on South-east Asia”, they said.
