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Singapore

Singapore revises green and transition financing criteria for four sectors

The updated Singapore-Asia Taxonomy shifts thresholds toward emissions-based assessments, affecting how banks and investors qualify sustainable financing.

Photo: The Business Times

What happened

Singapore has revised its green and transition financing criteria for the energy, maritime, iron and steel, and data centre sectors. Singapore Business Review+1 The Singapore Sustainable Finance Association, supported by the Monetary Authority of Singapore, launched the second edition of the Singapore-Asia Taxonomy for Sustainable Finance at COP31 in Antalya. Singapore Business Review The revised criteria shift towards emissions-based assessments rather than prescribed technologies. Singapore Business Review For maritime, the criteria align with the International Maritime Organization's 2023 greenhouse gas strategy and adopt its definitions of zero- and near-zero-emission fuels. Singapore Business Review Energy-efficiency metrics for data centres located in water-constrained areas have been made less stringent. The Business Times

Around it

For the energy sector, the updated Amber thresholds are based on the Global Energy and Climate Outlook 2024 scenario for Southeast Asia, while green thresholds remain aligned with internationally recognised low-carbon electricity benchmarks. Singapore Business Review The revisions reflect trade-offs between energy and water efficiencies for data centres in water-constrained areas. The Business Times Sustainable finance taxonomies set criteria and thresholds that determine which economic activities are eligible for sustainable and transition financing. The Business Times

Sources

  1. Singapore Business ReviewSSFA revises green financing criteria for four key sectors
  2. The Business TimesCOP31: Singapore revises data centre energy-efficiency metrics in updated taxonomy

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