Green bonds are public debt financing for an environmental project. Green bonds can offer tax advantages, providing incentives to invest in sustainable projects that are not available to other comparable types of bonds. However, as the frameworks for green bonds and green loans are similar in nature, a green loan is based on a loan, typically smaller than a bond, in a private transaction, and the funds from green bonds are committed to environmental or climate change projects, such as investments in renewable energy.
In Singapore, MAS will subsidise up to S$100,000 of additional costs for external audits of eligible green, social, sustainability and sustainability-linked bonds, and encourages the adoption of internationally accepted standards for green bonds of a minimum size of $200 million.
Other references for Green Bonds:
- Green Bonds - the reserve management perspective
- ICMA - Voluntary Process Guidelines for Issuing Green Bonds
- Sustainalytics - Simplifying Sustainable Finance – Explaining Green Bonds, Green Loans, Sustainability Linked Loans and Bonds and More
- Sustainalytics - Sustainability-Linked Financial Instruments: Creating Targets and Measuring Your Company's Performance
SGD$ 35 billions
of green bonds will be issued by Singapore Governement before 2030.
(Green Denmark SEA)
+ 50%
in Green Bonds supply in Singapore in 2021
(SMU -Singapore Management University)
SustainableSG was started in September 2018 to accompany companies, non-profit entities and government agencies to review and implement effective and sustainable corporate strategies. Our services include:
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.