it would issue green bonds on selected infrastructure projects, with S$19 billion worth already identified.Responding to a question from CNA Digital’s Chief Editor, Jaime Ho on the pressures that banks face in easing off their investments in, and loans to industries still heavily reliant on fossil fuels, Mr Menon acknowledged that this is not something that can be done immediately.
“So we tell the banks, you must have a transition strategy, that will make sure your customers and clients go on to cleaner and cleaner fuels … and you must create incentives to do that.’’The “bread and butter” issue for financial institutions is the calculation of profit versus risks but the reality is that in the next 10 to 20 years, these risks are going to be too high, and if companies don’t address them, they are passed on to the banks investing in them.
“So you need to build up the capability, then you need to put pressure through regulation and the two must work in tandem, then we will get there,’’ he said.JOBS AND NEW SECTORS MAS itself is not sitting idle either. Asked about MAS’ own hiring plans as it scales up its climate capabilities, Mr Menon revealed that the authority has just begun a search for a Chief Sustainability Officer – something he says should ideally have been done “six to 12 months ago”. Mr Menon added that for himself, his own journey in MAS has seen him learn new skills.
Singapore's carbon tax rate has been set at S$5 per tonne of greenhouse gas emissions from 2019 to 2023. The Government had earlier said this would be increased to between S$10 and S$15 per tonne by 2030.
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