Singapore and the UK Enhance Cooperation in Sustainable Finance

The United Kingdom (UK) and Singapore held the 8th UK-Singapore Financial Dialogue in London recently facilitating an exchange of views on joint projects, in priority areas such as sustainable finance, financial technology, and innovation.

Both countries agreed on the urgent need to develop approaches that facilitate and scale financing to support the transition of economies to net zero.

The countries also recognised the value of increased cooperation on transition plans to mobilise real economy emission reductions.

The Monetary Authority of Singapore (MAS) provided updates on Singapore’s focus on scaling blended finance and addressing energy transition needs in Asia, MAS’ Finance for Net Zero Action Plan (FiNZ Action Plan), and initiatives to mobilise green and transition financing to catalyse Asia’s net zero transition.

The UK meanwhile provided updates on the Transition Plan Taskforce’s (TPT) work to finalise its disclosure framework and the TPT’s international engagement with governments and regulators on the international applicability of the framework alongside the International Sustainability Standards Board’s (ISSB) final standards.

Both the UK and Singapore agreed to support the ISSB in implementing the standards and reaching its goal of achieving globally interoperable disclosure standards by, for example, supporting capacity-building efforts and sharing experiences.

Nature and Biodiversity Loss

Both countries also exchanged views on their respective Environmental, Social, and Governance (ESG) data and ratings codes of conduct which have been published for consultation. The UK and Singapore agreed to explore how to deepen bilateral cooperation and promote global coordination and common expectations.

The UK and Singapore reaffirmed the crucial need to deepen the understanding of nature and biodiversity loss and its impact on the financial sector.

Both countries welcomed an upcoming joint research project on nature-related financial risks in Southeast Asia involving the University of Cambridge Institute for Sustainability Leadership (CISL) and the Singapore Green Finance Centre, which is co-managed by Imperial College Business School and Singapore Management University (SMU).

The UK shared its efforts to quantify the UK’s financial and economic risks from exposure to nature degradation through the work by the UK’s Green Finance Institute with the support of the Bank of England (BoE) and the Department for Environment, Food & Rural Affairs (DEFRA).

The UK also provided an update on the latest developments from the Taskforce on Nature-related Financial Disclosures (TNFD), ahead of the final publication of the TNFD framework in September 2023.