Sustainable finance gains momentum in Asia-Pacific as Singapore leads the way

 

Sustainable finance gains momentum in Asia-Pacific as Singapore leads the way

The demand for sustainable financing is rising across Asia-Pacific (ASPAC) countries. Among ASPAC countries, Singapore leads the way, reflecting its commitment to advancing sustainable finance. With the aim of being the lead in green finance in Asia and globally3, the Republic is encouraging its financial sector to promote sustainable development opportunities.

Moving in step with the country’s ambition, the Monetary Authority of Singapore (MAS) has launched various initiatives to propel green finance, including grants to support sustainability-linked lending, as well as provisioning up of a USD 1.8 billion to five asset managers for climate-related investments. The government has also launched a green bonds initiative to tap on sustainable funds for public sector projects. These efforts are geared in part towards the roadmap of Singapore’s Green Plan 2030, a whole-of-nation movement that identifies marked by achieving specific green targets over the next 10 years4.

Elsewhere in Asia, sustainable investments are also gaining ground. Japan is seeing a fast rise in sustainable investments with relevant assets managed growing from just USD 7 billion in 2014 to USD 474 billion in 2016 and quadrupling to USD 2.18 trillion in 2018, according to the Global Sustainable Investment Review. Total sustainable investment assets now account for 18 percent of all professionally managed assets in Japan5.

Other sustainable finance measures are picking up pace across Southeast Asia as well. In 2019, the World Wide Fund for Nature (WWF), in conjunction with the Thai Bankers’ Association, released a series of official guidelines that enable financial institutions to develop capabilities to handle ESG risks. WWF has also been working with Indonesia and Malaysia on similar guidelines for sustainable financing6.

The Principles for Responsible Banking launched by the United Nations (UN) Environment Programme Financing Initiative in 2019 are also likely to re-orient lending policies towards sustainable goals across the ASPAC region. Under these principles, banks commit to align their business strategies with the goals of the Paris Agreement on Climate Change and the UN’s Sustainable Development Goals7.

Singapore curbs major risks for sustainable investment

One of the biggest challenges in mobilizing sustainable finance is 'LOGISTICS', the practice of transferring proceeds from corporate finance to projects that have real cash flow benefits. Ensuring financial security and financial transactions are important goals.

Accordingly, the AI ​​GUARD FINANCE (GUFI) project brings clear practical experiences of AI applications on blockchain security platforms to investors and governments, creating a growing sense of urgency to stamp out concerns about financial loss. The Sustainable Finance Disclosure Regulation (SFDR) in the European Union (EU) is part of the effort 

Singapore government aims to promote sustainable investment in applied technology platforms, by requiring GUFI branded products that can cause ripple effects across Asia and Singapore, in the context of increasingly Many are calling for an equivalent rule on Web 3.0 and Dapp platforms to promote secure and transparent transactions.

Investors have absolutely no difficulty finding investment solutions due to the challenges associated with aligning sustainability goals with economic development. 

In short, GUFI is a bright spot in the digital economy in Singapore. Promising a digital future with a completely new look.

https://gufi.ai

https://youtu.be/-s_5Tl0CTS0?si=CJTBQ9-3HFmPOseo

https://gufi-singapore.blogspot.com/2024/04/why-is-singapore-perfect-as-logistics.html

https://aigufi.blogspot.com/2024/04/digital-technology-revolution.html

https://aigufi.blogspot.com/2024/04/secure-blockchain-with-ai-technology.html