SINGAPORE: The Monetary Authority of Singapore (MAS) on Monday (Nov 11) announced that it has set up a US$2 billion green investments programme to invest in public market investment strategies that have a "strong green focus".
MAS said the programme will help to support Singapore’s financial centre in promoting environmentally sustainable projects and mitigating climate change risks in Singapore and the region.
“The green investment programme is a major prong of the green finance action plan announced by Minister for Education Ong Ye Kung and MAS board member at the Singapore FinTech Festival (SFF) x Singapore Week of Innovation and TeCHnology (SWITCH),” MAS added.
As part of the programme, MAS said it will place funds with asset managers who are committed to deepening their green investment activities and capabilities.
"The deep engagement with these asset managers will help to further the development of Singapore’s green financing ecosystem, as well as strengthen MAS’ understanding of climate change risks and to better position MAS’ own investment portfolio for long-term sustainable returns," MAS said.
MAS will place US$100 million in the Bank for International Settlements’ Green Bond Investment Pool as its first investment under the programme.
“Together with other participating central banks, MAS hopes that this initiative will help catalyse further deepening of the green bond market," the authority said.