In the upcoming Punggol Digital District, businesses will be connected to a network of sensors collecting real-time data on solar generation, building occupancy, rainfall and humidity; they can use this information to optimise their energy usage. We are working towards a Circular Economy, where resource usage is reduced and resources are re-cycled Singapore is the first country in the world to achieve circularity in the water sector. We collect every drop of used water, treat and purify it, and turn much of it into clean water again. Singapore is extending the circularity principle to other areas. We are experimenting with the use of treated incineration waste as construction materials for building roads. We are looking into transforming waste plastic into alternative fuels. We are recycling food waste into sustainable animal feed. Under the Zero Waste Masterplan, by 2030, Singapore aims to reduce by 30% the amount of waste per capita that we send to our landfills. We are positioning Singapore as a carbon services hub to complement Asia’s decarbonisation eﬀorts. There is good potential in Southeast Asia to generate carbon credits. Singapore can play a role in facilitating the financing of projects that reduce or remove emissions through these credits. A critical enabler for all these sustainability eﬀorts – in Singapore and across Asia – is Green Finance. https://www.mas.gov.sg/news/speeches/2020/harnessing-the-power-of-finance-for-a-sustainable-future  4/13  14/10/2020  “Harnessing the Power of Finance for a Sustainable Future”- Keynote Speech by Mr Ravi Menon, Managing Director, MAS, at the Finan…  Finance fuels the economy, shapes investment decisions, and drives action.

Corporates in Asia rely more on bank loans compared to bonds. MAS will therefore introduce a grant to fund the costs of conducting external reviews and ratings, for green and sustainability-linked loans. The grant will also promote the development of sustainable lending frameworks that provide simplified processes and standardised criteria for borrowers. This will reduce the cost of green borrowing and encourage more small and medium enterprises to tap on such loans. Progress on the green bond and green loan fronts has been good. Singapore is now ASEAN’s largest green finance market, accounting for close to 50% of cumulative ASEAN green bond and loan issuances. [6] Notably, sustainable financing and investment flows have held up well through the first half of this year, despite the pandemic and broad-based economic weakness. Singapore is also steadily developing solutions such as Insurance Linked Securities to address climate risks. MAS’ Insurance Linked Securities Grant Scheme has seen strong take-up since its launch in 2018. Within two years, we have seen nine catastrophe bond issuances in Singapore. This includes the first Asian sovereign and catastrophe bond covering earthquake and typhoon risks in the Philippines. The strong expansion of wealth in Asia will provide a boost to sustainable investments. Personal wealth in Asia excluding Japan has seen an eight-fold increase over the past two decades. [7] Despite the economic disruption due to COVID-19, Asia is projected to have the strongest wealth growth in the world over the next 5 years. This wealth is increasingly being allocated to ESG causes and investments.