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Singapore Green Bond Framework Introduced for Upcoming Inaugural Singapore Sovereign Green Bond Issuance

09 Jun 2022
Singapore Green Bond Framework to establish guidelines for green bond issuances by the public sector

The Singapore Government today published the Singapore Green Bond Framework (Framework), a governance framework for sovereign green bond issuances under the Significant Infrastructure Government Loan Act 2021 (SINGA). The Framework details the Singapore Government’s (i) intended use of green bond proceeds, (ii) governance structure to evaluate and select eligible projects, (iii) operational approach to manage green bond proceeds, and (iv) commitment to post-issuance allocation and impact reporting. 

Key Features of the Framework

2. In line with the Singapore Government’s commitment to ensure that the green bonds issued by public sector agencies[1] adhere to market best practices, the Framework has been designed with the following principles: 

a) Alignment with internationally recognised market principles and standards: The Framework is developed and structured in alignment with the core components and key recommendations[2] of the International Capital Market Association (ICMA) Green Bond Principles 2021[3] and the ASEAN Capital Markets Forum ASEAN Green Bond Standards 2018[4]

b) Stringent governance and oversight of project selection and allocation of proceeds: The Second Minister for Finance chairs the Green Bond Steering Committee[5], which assumes overall responsibility for proper governance and implementation of the Framework. The Singapore Government commits to annual post-issuance allocation reporting and impact reporting on environmental benefits and, where possible, social co-benefits of the Eligible Green Expenditures. This provides transparency and accountability for investors and other interested parties.

c) Technical screening to evaluate and identify green projects: The eligibility criteria for the Green Categories have been developed with reference to internationally recognised market principles and standards such as the ICMA Green Bond Principles and the Climate Bond Initiative (CBI) Taxonomy and Sector Criteria. 

3. Proceeds from green bonds issued under the Framework will be used to finance expenditures in support of the Singapore Green Plan 2030. This facilitates the transition to a low-carbon economy in Singapore, and advances the United Nations Sustainable Development Goals. The following are the categories of Eligible Green Expenditures:

a) Renewable Energy
b) Energy Efficiency
c) Green Building
d) Clean Transportation
e) Sustainable Water and Wastewater Management
f) Pollution Prevention, Control and Circular Economy
g) Climate Change Adaptation
h) Biodiversity Conservation and Sustainable Management of Natural Resources and Land Use

4. Morningstar Sustainalytics, an independent ESG research firm, has completed an external review (Second-Party Opinion) on the green credentials of the Framework, and is of the view that the Framework is credible, impactful and aligns with internationally recognised market principles and standards.

5. Second Minister for Finance Indranee Rajah said at the Singapore Sustainable Investing and Financing Conference 2022, “We are committed as one Government to taking bold and decisive actions to tackle climate change, finance sustainable infrastructure, and catalyse the green economy. The publication of our Singapore Green Bond Framework is yet another important step forward in this regard”.

6. DBS Bank served as adviser to the Singapore Government on the development of the Framework. DBS Bank’s Global Head of Fixed Income, Clifford Lee, said, “As a leading financial hub with an AAA rating, Singapore is well-placed to lead the development of the Green Bond Framework, which will serve as a good reference point to help further develop, grow and deepen ESG financing in Asia. We are heartened to support the Singapore Government in the structuring and development of the framework which will provide a robust foundation for Singapore to further cement its position as a global green finance hub, and drive more high-quality public and private green bond issuances to fuel the nation’s climate ambitions.”

7. You can read more on the Singapore Green Bond Framework and the Second-Party Opinion at

Inaugural Issuance of Singapore Sovereign Green Bond

8. To support Singapore’s transition to a low-carbon economy and spur Singapore’s development as a green finance hub, the Singapore Government has announced at Budget 2022 that the public sector will issue up to S$35 billion of green bonds by 2030[6]. This will include bonds issued by the Singapore Government as well as its Statutory Boards, to finance public sector green infrastructure projects.

9. The Singapore Government will be issuing its inaugural sovereign green bond under the SINGA in the coming months. Known as Green SGS (Infrastructure) bonds, these bonds will be used to finance nationally significant infrastructure[7] which meet the green criteria under the Framework. Such infrastructure projects are expected to provide long-term environmental benefits to both the current and future generations.

10. The Monetary Authority of Singapore (MAS) will undertake the issuance and management of SGS on behalf of the Government. The MAS will provide more details about the upcoming issuance of the Green SGS (Infrastructure) bond closer to its issuance date.

Issued by:
Ministry of Finance
Monetary Authority of Singapore

09 June 2022


[1] Statutory Boards that intend to issue green bonds will develop their own green bond frameworks, taking reference from the Singapore Green Bond Framework. This ensures that the Statutory Boards’ respective green bond frameworks will also be aligned with best practices in the international markets.

[2] The ICMA Green Bond Principles are a set of voluntary guidelines that recommend transparency and disclosure, and promote integrity in the development of the green bond market. The ASEAN Green Bond Standards are aligned with the ICMA Green Bond Principles, and aim to provide more specific guidance on how the ICMA Green Bond Principles are to be applied across ASEAN in order for green bonds to be labelled as ASEAN Green Bonds. 

The four core components of the ICMA Green Bond Principles and the ASEAN Green Bond Standards are (i) Use of Proceeds, (ii) Process for Project Evaluation and Selection, (iii) Management of Proceeds, and (iv) Reporting. The key recommendations for heightened transparency are (i) Green Bond Frameworks and (ii) External Reviews.

[3] Green Bond Principles, ICMA, 2021

[4] ASEAN Green Bond Standards, ASEAN Capital Market Forum, 2018

[5] The Green Bond Steering Committee comprises senior government representatives from the Ministry of Finance, Monetary Authority of Singapore, Accountant-General’s Department, Ministry of Sustainability and the Environment, and Ministry of Transport.

[6] Singapore’s FY2022 Budget Statement

[7] To qualify as nationally significant under the SINGA, infrastructure projects should be controlled and legally owned by the Government, cost at least S$4 billion, have a useful life of at least 50 years, and would support or materially improve national productivity or Singapore’s economic, environmental, or social sustainability.