Investing

Singapore wants global standards for green financing By Reuters

© Reuters. FILE PHOTO: The financial district is seen shrouded by haze in Singapore September 18, 2019. REUTERS/Feline Lim

By Joe Brock

SINGAPORE (Reuters) – Booming green finance markets need to be subject to stronger global regulation to ensure the best results for investors and the planet, Singapore’s Minister for Sustainability and the Environment Grace Fu told Reuters.

Companies are under increasing pressure to reduce carbon emissions and burnish their sustainability credentials, fuelling a flurry of investment in financial instruments, such as green bonds and carbon credits.

Asia-Pacific borrowers more than doubled issuance of bonds tied to environmental, social and governance (ESG) themes to a record $69 billion this year.

Money raised through these bonds should fund projects that have a positive impact on the environment but standards, rankings and metrics vary widely, making it difficult to judge the quality of a sustainable investment.

“The market is fairly fragmented and we don’t have very consistent standards being agreed globally,” Fu said in an interview at the “Reuters Events: Global Energy Transition” conference.

Fu said one way to set rules was through the United Nations Framework Convention on Climate Change, an international treaty.

“The world will benefit from a more harmonised and integrated market,” she said.

Some companies are trying to reduce their impact on the environment by buying carbon credits, which can be used to offset the greenhouse gases they emit.

But the carbon credit market is disorganised, lacks transparency, and some of the credits have not resulted in significant emission reductions, a study published in January by consultancy McKinsey, found.

Singapore, one of Asia’s biggest financial centres, is developing a global exchange and marketplace for carbon credits.

“If we can get better standards and implement it … giving greater confidence to investors and issuers, then we will have a better and more stable market for carbon credits,” Fu said.

For more on the Reuters Events: Global Energy Transition conference please click here: https://reutersevents.com/events/energy-transition-global/

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.


Most Related Links :
Business News Governmental News Finance News

Need Your Help Today. Your $1 can change life.

[charitable_donation_form campaign_id=57167]

Source link

Back to top button