Green Bonds

What is Singapore’s Green Agenda?

Climate change is a global existential challenge. Singapore, being a low-lying city state, is particularly vulnerable to the effects of climate change.

As such, Singapore is fully committed to the global climate action, and will play its part as a responsible member of the international community:

• Singapore Green Plan 2030 charts concrete targets which:

  • Strengthen Singapore’s commitments under the United Nations’ 2030 Sustainable Development Agenda and Paris Agreement.

  • Position us to reduce our emissions and work towards net zero emissions by 2050.

• MOF’s Occasional Paper “Green Budgeting in Singapore: A Progress Update”, published in January 2025, explains the Government’s green budgeting approach by incorporating environmental sustainability considerations, including climate risk management and the use of green financing, into its financial policies and planning to achieve better outcomes.

• The public sector will take the lead by issuing up to S$35 billion of green bonds by 2030, comprising green bonds issued by the Government as well as Statutory Boards to support Singapore’s sustainable development and deepen Singapore’s green finance market. It will also serve as a reference for the corporate green bond market, paving the way for greater private sector green finance activity.

What is the Singapore Green Bond Framework?

The Singapore Green Bond Framework (first launched in 2022, last updated in January 2025) lays the foundation for how green bonds are issued by the Government under the Significant Infrastructure Government Loan Act 2021 (SINGA).

The January 2025 version is developed and structured in alignment with:

• International Capital Market Association (ICMA) Green Bond Principles 2021 (with June 2022 Appendix 1)

• ASEAN Capital Markets Forum ASEAN Green Bond Standards 2018 and;

• Singapore-Asia Taxonomy for Sustainable Finance (December 2023).

What are the key features of the Singapore Green Bond Framework?

Use of Proceeds: The Framework lists eight categories of green projects that may be financed by the Singapore sovereign green bonds.

• Renewable Energy

• Energy Efficiency

• Green Buildings

• Clean Transportation

• Sustainable Water and Wastewater Management

• Pollution Prevention, Control and Circular Economy

• Climate Change Adaptation

• Biodiversity Conservation and Sustainable Management of Natural Resources and Land Use

Project Evaluation and Selection: The Green Bond Steering Committee (GBSC) undertakes key decisions related to the green bonds issued under this Framework, including the evaluation and selection of projects. The GBSC is chaired by the Second Minister for Finance, and comprises senior government representatives from various government bodies¹.

Management of Proceeds: The Government deploys the net sovereign green bond proceeds to only GBSC-approved projects, and will fully allocate the net proceeds within two years. The unallocated proceeds pending allocation will be held in cash or invested in other short-term liquidity instruments.

Reporting: Until full allocation and in case of material changes, the Government will commit to annual allocation reporting, and impact reporting on environmental benefits and, where possible, social co-benefits of the Eligible Green Expenditures. This is to provide timely and updated information to investors and other interested parties.

External Review: In line with market practice, DNV, an independent provider, has provided a Second Party Opinion on the Framework published in January 2025, confirming that the Framework is aligned with the ICMA Green Bond Principles 2021 (with June 2022 Appendix 1), the ASEAN Green Bond Standards 2018 and the Singapore-Asia Taxonomy for Sustainable Finance (December 2023).

[1] These government bodies are the Ministry of Finance, Monetary Authority of Singapore, Accountant-General’s Department, Ministry of Sustainability and the Environment, and Ministry of Transport.

What are the Singapore Sovereign Green Bonds?

Singapore sovereign green bonds, also known as Green Singapore Government Securities (SGS) (Infrastructure), are used to finance major, long-term green infrastructure in Singapore that qualify under the Framework. Borrowing for such infrastructure spreads the costs across the generations that would benefit from these projects.

Examples of eligible green SINGA projects include the upcoming Cross Island Line and Jurong Region Line.

The Singapore Government borrows prudently and adheres to stringent safeguards:

• Infrastructure projects will need to meet the high bar to qualify as nationally significant under SINGA, as well as the green eligibility criteria stated in the Framework to be qualified for financing via Green SGS (Infrastructure).

• Issuance of such green bonds is subject to the overall legislative gross borrowing limit and the annual effective interest cost limit under SINGA²

As at 1 October 2025, the Singapore Government has issued S$7.7 billion of 50-year Green SGS (Infrastructure), and S$4.3 billion of 30-year Green SGS (Infrastructure) through auction and syndication.

[2] The gross borrowing limit of S$90 billion and annual effective interest cost threshold of S$5 billion apply to the overall SINGA programme, which comprises the issuance of both Green SGS (Infrastructure) and SGS (Infrastructure).

What are the Singapore Statutory Boards Green Bonds?

In line with market practice, Statutory Boards that intend to issue green bonds will develop and publish their own green bond frameworks, taking reference from the Singapore Green Bond Framework. Statutory Boards’ respective frameworks must align with internationally recognised market principles, standards, and best practices.

• Housing & Development Board (HDB) published its updated Green Finance Framework in June 2025. The net proceeds from HDB’s green finance transactions are used to finance or re-finance green buildings projects.

• Land Transport Authority (LTA) published its Green Bond Framework in July 2024. Proceeds from LTA’s green bonds are used to finance new or existing projects to deliver a more sustainable land transport ecosystem.

• National Environment Agency (NEA) published its Green Bond Framework in August 2021. Proceeds from NEA’s green bonds are used to finance sustainable infrastructure development projects including the Tuas Nexus Integrated Waste Management Facility, NEA’s flagship waste management project.

• PUB, Singapore's National Water Agency, published its revised Green Financing Framework in March 2025. Proceeds from PUB's green financing efforts fund planned and future green projects that support PUB's efforts to ensure a resilient and sustainable water supply for Singapore, which remains critical amidst the challenges of climate change.