MAS Sustainable Finance Advisory Panel discusses possible financing mechanisms to accelerate phase-out of coal-fired power plants in Asia and better support decarbonisation of energy, aviation and maritime transport sectors

30 October 2023

On 26 September 2023, the Monetary Authority of Singapore’s (“MAS”) Sustainable Finance Advisory Panel (“SFAP”) met and discussed possible financing mechanisms to accelerate the phase-out of coal-fired power plants in Asia and support decarbonisation of the energy, aviation and maritime transport sectors. The SFAP discussion also covered how private capital could be better mobilised to finance the region’s climate adaptation needs.

MAS issued a press release on 28 September 2023 which set out the following key takeaways from the discussion:

  • A comprehensive whole-of-ecosystem approach that provides credibility for early phase-out projects and innovative financing structures, regulatory clarity on financed emissions, and appropriate policy reforms is critical to accelerate coal transition.
  • Accelerating adoption of sustainable aviation and marine fuels is key to decarbonisation of aviation and maritime transport sectors. Potential levers to lower the costs of these fuels include demand aggregation, securing a reliable and adequate supply of feedstock needed to produce these fuels, and supportive government policies to encourage adoption.
  • Public-private collaboration is needed to tackle decarbonisation. Multi-stakeholder collaborative platforms would be useful to identify opportunities in financing sectoral transition, foster synergy between government policies and industry actions, and design innovative financing solutions.

SFAP members also discussed possible solutions to scale up private financing for the region’s climate adaptation efforts and ways to address the underpricing of physical climate risks.

SFAP was established in 2022 to guide MAS on its strategies and initiatives to build a credible and vibrant sustainable finance ecosystem. The full list of SFAP members can be found on the MAS Sustainable Finance Advisory Panel webpage.

Reference materials

The press release is available on the MAS website www.mas.gov.sg.