SINGAPORE - The path ahead for climate action is more uncertain today than a decade ago , but Singapore continues to take a long-term view of sustainability and remains committed to climate action, said Deputy Prime Minister Gan Kim Yong.

In the Monetary Authority of Singapore (MAS) sustainability report out on July 9, Mr Gan, who is also MAS chairman, said geopolitical shifts , heightened trade and economic uncertainty are significant challenges to climate action.

He also noted that some financial institutions have withdrawn from global net-zero alliances, and some supporters of climate action have also reassessed their commitments.

But Singapore remains committed, he said, with its goal to hit net-zero emissions by 2050 and develop a competitive, low-carbon economy.

“As a leading sustainable finance centre, MAS and Singapore remain committed to supporting the region’s transition to a more sustainable future,” he said in the report.

Mr Gan noted that the stakes are high, as climate inaction could lead to a 17 per cent drop in gross domestic product in the Asia-Pacific by 2070 if high emissions persist.

“A further delay in action may increase the vulnerability of countries and companies to climate shocks when they materialise and necessitate sharper and more disruptive transitions eventually. Taking action early will better enable us to adjust to and thrive in a climate-impacted global economy,” he said.

Transition in Asia also presents economic opportunities, Mr Gan added, with an estimate that renewable energy-related manufacturing in South-east Asia could create up to 6 million jobs by 2050 and generate up to US$100 billion in annual revenue by 2030.

“As an organisation, we continue to demonstrate leadership through reducing our corporate carbon emissions and managing a climate-resilient portfolio,” he said.

For instance, MAS is reducing carbon emissions across the currency value chain through initiatives like getting people to adopt its “fit-for-gifting” notes for Chinese New Year.

Fit notes are used currency notes that are generally clean and of suitable quality for recirculation, including for festive gifting.

MAS worked with banks to expand their network of pop-up and branch ATMs to dispense such notes. Hence, 16.2 million pieces of “fit” notes were exchanged in the 2025 festive season, an increase of 38 per cent compared with the Chinese New Year period in 2024.

This translates to emissions savings of around 517 tCO2e (tonnes of carbon dioxide equivalent) from not issuing an equivalent amount of new notes to meet festive demand – comparable to powering about 280 four-room HDB flats annually.

When it comes to investments and portfolios, MAS said it will also continue to strengthen the climate resilience of the Official Foreign Reserves portfolio.

MAS, as Singapore’s central bank, manages the Official Foreign Reserves. These reserves are accumulated when MAS buys US dollars in exchange for Singapore dollars, in order to moderate the appreciation of the Singapore dollar exchange rate.

It is also working to help companies with their sustainability disclosures.

MAS worked with the Singapore Exchange (SGX) to get listed companies to start incorporating climate-related disclosure requirements aligned with global standards from FY2025.

“Aligning disclosure requirements to internationally recognised standards such as the IFRS Sustainability Disclosure Standards, will enhance the consistency and comparability of quality climate-related information. This in turn enhances market discipline, investor protection, as well as access to new business opportunities,” MAS said.

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IFRS stands for International Financial Reporting Standards, which are used for global accounting and sustainability disclosures.

MAS is also studying a new disclosure framework on climate-related financial risks for the banking sector, as well as requirements for the insurance sector.

The climate transition also provides more job opportunities. After the jobs transformation map for sustainable finance was launched in April 2024, MAS and the Institute of Banking and Finance started initiatives to support the upskilling of the financial sector workforce in sustainable finance.

Since the launch of the jobs transformation map, at least 4,100 financial sector professionals across more than 100 financial institutions have been trained in sustainable finance through recognised courses, MAS said.

The National University of Singapore Business School also recently introduced a specialisation in sustainable finance for its undergraduates majoring in finance.

When it comes to social and sustainability-related bonds and loans, MAS also supports global and Asian companies in accessing green and transition financing.

Singapore is Asean’s largest market for green, social, sustainability and sustainability-linked bonds and loans, accounting for more than half of the market, MAS noted.

The amount of such loans that originated from Singapore hit an annual high of over $48 billion in 2024. This figure has been increasing year on year, over the last seven years.

MAS chief sustainability officer Gillian Tan said South-east Asia’s sustainable finance market has demonstrated resilience, with sustainable finance proceeds raised from bonds and loans in the region increasing to record highs and growth outpacing that of other regions in 2024.

“The region’s low-carbon transition continues to present significant economic opportunities.”

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She added that as the financial regulator, MAS provides risk-based guidance and supervisory engagement.

“This enables financial institutions to bolster their resilience to environmental risks and finance the transition to a more climate-resilient economy, while also adapting their actions to changing global and local circumstances,” she said.

“As a financial sector developer, MAS’ strategies are aimed at ensuring financial institutions are able to support Singapore and the region’s transition through financing and other solutions. ”