UK and Singapore strengthen fintech and sustainable finance cooperation

The United Kingdom and Singapore have renewed their commitment to collaboration in FinTech innovation and sustainable finance, focusing on advancing initiatives that support global sustainability goals.

During recent discussions, the two nations explored ways to enhance sustainable finance, particularly in scaling investments to support the net-zero agenda. The key highlight was the importance of globally comparable and strong transition plans to facilitate the growth of transition finance. Updates included the UK’s Transition Plan Taskforce’s disclosure framework and the Monetary Authority of Singapore’s (MAS) consultation on Transition Planning Guidelines. They also acknowledged international efforts by organizations such as the G20 and Financial Stability Board (FSB) in addressing climate-related financial risks.

Both countries emphasized the need for strong disclosure standards, ESG ratings and data products in sustainable finance. They confirmed their commitment to adopting the International Sustainability Standards Board’s (ISSB) standards to improve global consistency and comparability in sustainability disclosures.

Nations recognized the significant funding gap for green and transition finance in Asia. They outlined plans to mobilize private capital for the net-zero transition, building on past strategic partnerships. Singapore’s Financing Asia’s Transition Partnership (FAST-P) was highlighted as a key initiative to support green finance and energy transition projects in the region.

In the FinTech sector, the discussions covered a range of topics including artificial intelligence (AI), cryptoassets, central bank digital currencies (CBDC) and tokenization. They discussed the risks and opportunities presented by AI, as well as regulatory frameworks for cryptoassets and stablecoins. The UK shared updates on its regulatory regime for cryptoassets and its exploration of CBDC, alongside discussions on tokenization and distributed ledger technology (DLT).

Developments in non-bank financial intermediation (NBFI) and cross-border payment connectivity were also reviewed. Singapore and the UK emphasized the need to enhance authorities’ ability to monitor risks in NBFIs and to finalize international policies on margining practices and NBFI leverage. The commitment to the G20’s Roadmap to Enhancing Cross-Border Payments was reiterated, with updates on initiatives like Project Nexus, which aims to improve cross-border payment systems.