Singapore Updates Green Finance Guidance on Asia Taxonomy Use

The Sustainable Finance Association of Singapore (SSFA), supported by the Monetary Authority of Singapore (MAS), has released updated guidance on applying the Singapore-Asia taxonomy to green and transition finance. The guidelines enable financial institutions to fund projects that are not yet aligned with the taxonomy but are expected to meet green thresholds or reduce emissions over time. The Singapore-Asia taxonomy, finalised in 2023, employs a traffic-light system to classify activities. The new document also offers advice on managing data gaps using forward-looking metrics, with SSFA aiming to drive broader adoption across Southeast Asia.