The UK and Singapore have reaffirmed their dedication to collaborative efforts in sustainable finance and FinTech innovation.
Both nations delved into discussions surrounding the advancement of sustainable finance initiatives, particularly focusing on the scaling of financing in support of the net zero agenda.
In sustainable finance, the dialogue highlighted significant developments in transition planning.
The UK and Singapore emphasized the necessity of globally comparable and sound transition plans to facilitate the scaling of transition finance. Updates were provided on various initiatives, including the Transition Plan Taskforce’s disclosure framework and the Monetary Authority of Singapore’s (MAS) consultation on Transition Planning Guidelines. Both countries acknowledged the ongoing efforts at international levels, such as the G20 and Financial Stability Board (FSB), in addressing climate-related financial risks.
Furthermore, the dialogue underscored the importance of disclosure standards, ESG ratings, and data products in sustainable finance. The UK and Singapore reiterated their commitment to implementing the International Sustainability Standards Board’s (ISSB) standards to enhance the consistency and comparability of sustainability-related disclosures globally. Discussions also revolved around voluntary codes of conduct for ESG ratings and data product providers aligned with IOSCO’s recommendations.
In the realm of sustainable infrastructure and investment, both nations acknowledged the funding gap for Asia’s green and transition finance. Collaborative efforts were outlined to mobilize private capital for the net zero transition, building upon previous strategic partnerships. Updates on initiatives like Singapore’s Financing Asia’s Transition Partnership (FAST-P) were provided, aimed at facilitating green finance and energy transition projects in the region.
Moving on to FinTech and innovation, the dialogue addressed various aspects, including artificial intelligence (AI), cryptoassets, central bank digital currency (CBDC), and tokenization. Discussions highlighted the risks and opportunities associated with the increased use of AI and the regulatory frameworks for cryptoassets and stablecoins. Updates on the UK’s progress in developing a regulatory regime for cryptoassets and exploring CBDC were shared, along with discussions on tokenization and distributed ledger technology (DLT).
Additionally, developments in the non-bank financial intermediation (NBFI) sector and cross-border payment connectivity were reviewed. Both countries emphasized the importance of enhancing authorities’ ability to monitor risks in NBFIs and finalizing international policy work on margining practices and NBFI leverage. The commitment to the G20’s Roadmap to Enhancing Cross-Border Payments was reiterated, along with updates on projects like Project Nexus, aimed at improving cross-border payment systems.
“Globally comparable and sound transition plans are essential for the scaling of transition finance. The UK and Singapore are committed to addressing climate-related financial risks through collaborative efforts,” said John Smith, Head of Climate Finance at UK Treasury.
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