China and Singapore collaborate to expand green and transition funding
As part of their partnership, China and Singapore will work together “on concrete initiatives that will catalyse capital flows to back up a credible and welcoming transition to a low carbon future for our nations and the region.”
The two Asian superpowers, China and Singapore, have formed a working group to strengthen their already robust bilateral collaboration in green and transition finance. The move is intended to facilitate greater public-private sector collaboration in the region for a low-carbon future.
In a joint announcement, the People’s Bank of China (PBC) and the Monetary Authority of Singapore (MAS) said they will form a group to promote environmentally responsible banking practices. By working together with GFTF, the two hope to reduce emissions and save money at the same time.
The Global Framework for Transition Factors (GFTF) will make it possible for MAS and PBC to synchronize their taxonomies and definitions of ongoing transition initiatives. The task force will also provide the countries with the means to improve sustainability bond market connectivity, including access in both directions to green and transition bond products.
MetaVerse Green Exchange, a licensed cryptocurrency exchange from Singapore, and Beijing Green Exchange, a company sanctioned by the Beijing municipal government, will participate in the GFTF’s technology initiative to facilitate the adoption of sustainable finance. The two companies are also tasked with piloting carbon credit-based digital green bonds.
Bank accounts are apparently being opened by Chinese financial institutions for authorized crypto firms, with some serving as a payment layer for crypto platforms.
ZA Bank, Hong Kong’s largest virtual bank, will serve as the settlement bank for crypto companies, according to a Wall Street Journal report.