Mr Leon Perera asked the Prime Minister whether MAS will consider placing limits on local banks refinancing coal power projects overseas.
Mr Tharman Shanmugaratnam (for the Prime Minister): Financing the progressive decarbonisation of hard-to-abate sectors and energy sources is a key priority globally and in Asia.
With regard to coal, we start from a situation where it is the largest source of electricity generation and a significant fuel for industrial use in Asia1. Financing should aim at supporting the progressive phase-out of coal and shift to cleaner fuels without major disruption to the developing economies in the region.
The Monetary Authority of Singapore’s guidance to banks is that such financing should be on the basis of credible transition plans that mitigate their exposures to environmental risks and are aligned with the Paris Agreement goals.
Prime Minister’s Office
3 March 2023