Green Loans are made to finance a 'green project' that promotes environmental sustainability. A green project can be anything that has a clear environmental benefit. Green loans can help the business to access liquidity and better economic conditions. You can read more on the World Bank and DBS resources to understand the basics of a Green Loan. The Green Loan Principle Framework allows businesses to clearly understand the characteristics of a Green Loan.
In the region, EFS-Green and its partner financial institution, CIMB, are facilitating greater access to green finance for companies developing technologies and solutions that reduce waste, resource consumption or greenhouse gas emissions, particularly in the clean energy, circular economy, green infrastructure and clean transport sectors. Banks in Singapore are also encouraged to develop green and sustainability-linked lending frameworks to make such financing more accessible to small and medium-sized enterprises (SMEs).
Once you have a clear idea of your funding needs, it is advisable to look at the green and sustainability-linked loan schemes in Singapore that may be available to you to secure some funding for your projects.
90%
of the costs incurred by SMEs applying for green loans could be covered
(MAS)
70% risk-share
could be provided by EnterpriseSG to facilitate lending by partner financial institutions.
(Enterprise SG)
- Sustainability-related policies list in Singapore
- The Appendix 1 of Green Loan Principles from the Loan Market Association
- Qualifying Borrower Types for EFS-Green
- Financial Institution contact list
ACTIVATE - DESIGN - ACCELERATE. Our expert consulting services and trainings help business leaders understand the complexities of sustainability, consider climate- and nature-related risks and opportunities to make informed decisions and alleviate the administrative burdens of:
We work directly with SMEs or collaborate with other sustainability consulting companies on specific projects. We are actively involved in networks of sustainability professionals who share knowledge with public and educate other professionals to bring awareness and accelerate the transition in Singapore and worldwide (incl. The Matcha Initiative, Climate Fresk, etc.).
Our unique strength stems from understanding sustainability from the risk management perspective, creating a business case and using financial reasoning to adopt sustainable business practices and decarbonize.