The Monetary Authority of Singapore (MAS) recently released a detailed information note on the application of the Singapore-Asia Taxonomy for Sustainable Finance (SAT) across various sectors.
According to The Edge Singapore, this comprehensive 20-page document showcases how banks have been integrating the SAT since its inception in December 2023 and explores the potential for broader adoption within the professional services sector.
The SAT, notable for being the world’s first taxonomy to introduce a “transition” category, provides rigorous criteria for defining what constitutes green and transition activities. These are crucial for climate change mitigation, focusing on sectors like energy, real estate, and transportation, which collectively account for 90% of ASEAN’s greenhouse gas emissions and over 40% of its economic output.
One of the pioneering examples cited is the Oversea-Chinese Banking Corporation (OCBC), which issued a green loan to Yinson GreenTech in June 2023. This loan funded the region’s first fully electric hydrofoil crew transfer vessel, known as the Hydrogylder, which boasts zero direct tailpipe CO2 emissions and aligns with the green criteria under SAT’s transportation sector.
Indranee Rajah, Minister in the Prime Minister’s Office, highlighted the traction that the SAT has gained since its launch. She emphasized its importance in a recent LinkedIn post, urging professionals such as lawyers, consultants, and auditors to leverage the SAT to enhance the credibility and investor confidence in sustainable financing frameworks and products.
“The SAT has already shown significant impact and promises to be a crucial tool in ASEAN’s fight against climate change,” Indranee Rajah said. “It not only supports our decarbonisation pathway but also bolsters Singapore’s position as a hub for sustainable finance.”
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