UN ESCAP Commends Singapore for Its Green Central Banking Practices

Singapore has been recognized as a regional leader in climate finance and green monetary policy in the United Nations’ recent Economic and Social Survey of Asia and the Pacific.

The yearly flagship report from the Economic and Social Commission for Asia and the Pacific (ESCAP) highlighted Singapore’s preparedness to tackle the macroeconomic challenges posed by climate change via robust institutional structures and proactive central banking strategies.

“Central banks in India, Japan and Singapore encourage green financing through concessional lending and promoting the issuance of sustainable bonds,” the report stated.

This positions Singapore within a select group of Asia-Pacific economies that are proactively aligning financial systems with climate objectives while ensuring macroeconomic stability.

Singapore’s initiatives are part of a wider regional movement to integrate climate factors into fiscal and monetary strategies. ESCAP emphasizes the increasing significance of national green finance taxonomies, clear risk disclosures, and sustainable public budgeting. In this context, Singapore is recognized for influencing best practices that others in the region might follow.

Although the report's primary exposure analysis omits Singapore because of its high-income designation, the city-state is implicitly referenced in favorable instances of climate-conscious policymaking.

Although Singapore has its advantages, the report cautions that even the most prepared nations are susceptible to external disruptions, such as trade conflicts and climate-induced economic consequences.

As ESCAP urges for “coordinated regional efforts to safeguard long-term economic prospects and tackle climate change,” Singapore's leadership in climate finance leadership stands out as a model for integrating sustainability with economic policy.