Working Visit of United Nations Under-Secretary-General and United Nations Development Programme Associate Administrator Usha Rao Monari, 21-24 February 2022

United Nations (UN) Under-Secretary-General (USG) and UN Development Programme (UNDP) Associate Administrator Usha Rao Monari is on a working visit to Singapore from 21 to 24 February 2022.

During the visit, USG Rao Monari called on Senior Minister and Coordinating Minister for Social Policies Tharman Shanmugaratnam and Minister for Sustainability and the Environment Grace Fu on 22 February 2022, and Deputy Prime Minister and Coordinating Minister for Economic Policies Heng Swee Keat on 23 February 2022. Minister for Communications and Information Josephine Teo hosted USG Rao Monari to a visit to the ASEAN-Singapore Cybersecurity Centre of Excellence on 23 February 2022. The discussions at the various meetings covered issues of global concern, including sustainable development, climate change, post-pandemic recovery, and digital transformation.

In conjunction with the visit, the Ministry of Foreign Affairs and the UNDP jointly hosted a policy dialogue on “The Role of Governments, Monetary Authorities, and the Private Sector in Directing Sustainable Development Goals (SDG)-sensitive Investments: Insights from Singapore” on 23 February 2022. In his opening remarks, Minister for Foreign Affairs Dr Vivian Balakrishnan underscored the importance of the UN SDGs and the need for all stakeholders to work together to create an ecosystem where sustainable financing in support of the SDGs can take off. The full transcript of Minister Balakrishnan’s remarks is below.

          USG Rao Monari will depart from Singapore tomorrow morning. 

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MINISTRY OF FOREIGN AFFAIRS

SINGAPORE

23 FEBRUARY 2022

OPENING REMARKS BY MINISTER FOR FOREIGN AFFAIRS DR VIVIAN BALAKRISHNAN AT THE POLICY DIALOGUE ON “THE ROLE OF GOVERNMENTS, MONETARY AUTHORITIES, AND THE PRIVATE SECTOR IN DIRECTING SUSTAINABLE DEVELOPMENT GOALS (SDG)-SENSITIVE INVESTMENTS: INSIGHTS FROM SINGAPORE”, CO-HOSTED BY THE MINISTRY OF FOREIGN AFFAIRS AND THE UNITED NATIONS DEVELOPMENT PROGRAMME, 23 FEBRUARY 2022

Ms Usha Rao Monari,

The United Nations Under-Secretary-General and Associate Administrator for the United Nations Development Programme

Distinguished guests,

Ladies and gentlemen,

Thank you for inviting me to deliver the opening remarks for this dialogue. The theme of promoting Sustainable Development Goal-sensitive investments is most apt.

The COVID-19 pandemic has been a major setback for the 2030 Agenda for Sustainable Development. Even before the pandemic struck, progress towards the 17 SDGs was already patchy. Progress has now slowed even further, and in some cases, seen reversals. The numbers from the latest Sustainable Development Goals Report 2021 are cause for concern. Global extreme poverty rose for the first time since 1998. Between 119 and 124 million people have been pushed back into poverty and chronic hunger.

As we recover from the pandemic, we must build back our societies in a more resilient and sustainable way, and this will not be easy. Beyond tighter fiscal constraints, there are other broader challenges.  For example, our current consumption of the finite planetary resources is unsustainable. Our water, sanitation, food supply infrastructure remain inadequate and vulnerable in many parts of the world. The pandemic has also exposed and exacerbated problems such as inequality within and between nations. If we do not address these issues head on, our world will not have the capacity to tackle greater challenges like climate change or future pandemics.

The SDGs have been an important road map for humanity as agreed by over 190 countries in 2015. The development gaps which the pandemic revealed are precisely the challenges which the SDGs aim to address. What we need now is more effective mobilisation of financing for SDG-sensitive investments to fill these development gaps, especially when fiscal resources have become more constrained due to the pandemic. Finance plays an essential role in channelling resources to the right priorities. And the need for sustainable financing is great.

                The good news is that banks and investors are increasingly taking Environmental, Social and Governance factors, or ESG for short, into account when deciding where to invest. About one-fifth of all assets worldwide are now in funds that use some form of ESG criteria. For example, the Monetary Authority of Singapore, the MAS, has committed US$1.8 billion of its reserves to climate-related investments.

                However, the current global level of SDG investment is far from sufficient. According to the OECD, an estimated US$7 trillion in infrastructure investments is needed each year till 2030 to meet climate and development objectives. ASEAN alone will need an estimated US$200 billion in green investment annually through 2030 in order to achieve long-term sustainable economic growth.

The challenges in enhancing sustainable financing are well-known. First, many companies do not keep reliable or transparent climate-related data such as their projects’ emission trajectories or energy consumption. Climate-related financial disclosure standards are still being developed. These gaps can give room for selective reporting and inconsistent disclosures by companies, making it difficult for investors to make SDG-sensitive decisions.

Second, there is no common definition or taxonomy for activities that contribute to climate goals. Without a common understanding of what activities are “green”, cross-border green finance flows will be constrained.

Third, many companies lack the expertise to quantify environmental costs and the benefits of their projects.

This is where governments, monetary authorities, and the private sector need to work together to create an ecosystem for sustainable financing to take off. Each has a role to play. Let me elaborate.

First, governments must lead the way by laying out the vision, framework, and rules for sustainable financing. In Singapore, the Government launched the Singapore Green Plan 2030 in 2021 – an ambitious long-term plan to build a green, liveable and sustainable future, which covers areas from our infrastructure, urban planning and to building a green economy. This clear direction sends a message to the private sector to shift their investment position and to recognise that ESG is consistent with their fiduciary duties.

  Equally important, governments must raise public awareness of the SDGs and build capabilities to deliver on SDG investment. This includes engaging relevant partners to equip our people with the knowledge and skills needed. In this connection, Singapore is pleased to host the UNDP Global Centre for Technology, Innovation and Sustainable Development which has partnered our agencies to co-create innovative solutions for sustainable development in areas such as digital agriculture, smart cities, and sustainable finance.

Second, monetary authorities will need to complement the government’s efforts to develop the green finance solutions and markets. This may include the promotion of sustainable financing instruments, as well as the development of a common taxonomy on sustainable activities for financial institutions. MAS has been very active in these areas. More than S$8 billion in green, social and sustainability bonds have been issued in Singapore since 2017 to provide the private sector with incentives to embed sustainability considerations in their financing decisions.

MAS also convened a Green Finance Industry Taskforce to develop an industry taxonomy for Singapore-based financial institutions. MAS is actively participating in efforts to develop a regional taxonomy, taking into account international goals, while tailoring it to ASEAN’s context. MAS is setting out roadmaps for mandatory climate-related financial disclosures by financial institutions and listed entities which will facilitate the comparison of climate-related investments. My colleague, Dr Darian McBain, Chief Sustainability Officer from MAS, will shed more light on this.

Lastly, the private sector is a crucial player. There are greater expectations from investors and consumers that companies incorporate ESG and channel resources towards sustainable business activities. These developments will drive SDG investments and should be scaled up. One example in Singapore is the Climate Impact X – a joint initiative by Temasek, DBS, SGX and the Standard Chartered Bank to offer different financial products to cater to the needs of carbon credit buyers. This dovetails with Singapore’s aspirations to become a thriving carbon marketplace and demonstrates our support for Asia’s transition towards greater sustainability.

Ladies and gentlemen,

Despite the impact of COVID-19, there are glimmers of hope. We have seen a shared sense of responsibility where governments, regulators, businesses and individuals come together to tackle the challenges brought about by the pandemic. If we can bring the same spirit of togetherness in scaling up SDG-sensitive investments, there is hope that we can move closer towards achieving the SDGs by 2030.

We look forward to supporting the UNDP’s efforts to promote greater investments in the SDGs, including through the UNDP Global Centre for Technology, Innovation and Sustainable Development. Sustainable finance is already one of the Centre’s key priorities, and it would be timely to explore how we can further expand our collaboration, bring others on board.  

I am confident that this policy dialogue, its distinguished panel of speakers and the esteemed panellists will provide valuable insights on how sustainable financing can be enhanced. I wish you all a fruitful discussion that will pave the way for concrete collaboration.

                Thank you all very much.

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Photo Caption: Call on Deputy Prime Minister and Coordinating Minister for Economic Policies Heng Swee Keat by United Nations Under-Secretary-General and United Nations Development Programme Associate Administrator Usha Rao Monari

Photo Credit: Ministry of Communications and Information, Singapore

Photo Caption:  Call on Senior Minister and Coordinating Minister for Social Policies Tharman Shanmugaratnam by United Nations Under-Secretary-General and United Nations Development Programme Associate Administrator Usha Rao Monari

From left to right: United Nations Development Programme Resident Representative for Singapore Niloy Banerjee; United Nations Assistant Secretary-General and United Nations Development Programme Assistant Administrator and Director of the Regional Bureau for Asia and the Pacific Kanni Wignaraja; United Nations Under-Secretary-General and United Nations Development Programme Associate Administrator Usha Rao Monari; Senior Minister and Coordinating Minister for Social Policies Tharman Shanmugaratnam

Photo Credit: Ministry of Communications and Information, Singapore

Photo Caption: 

Call on Minister for Sustainability and the Environment Grace Fu by United Nations Under-Secretary-General and United Nations Development Programme Associate Administrator Usha Rao Monari

From left to right: United Nations Assistant Secretary-General and United Nations Development Programme Assistant Administrator and Director of the Regional Bureau for Asia and the Pacific Kanni Wignaraja; United Nations Under-Secretary-General and United Nations Development Programme Associate Administrator Usha Rao Monari; Minister for Sustainability and the Environment Grace Fu

Photo Credit: Ministry of Sustainability and the Environment, Singapore

Photo Caption: Visit to ASEAN-Singapore Cybersecurity Centre of Excellence by United Nations Under-Secretary-General and United Nations Development Programme Associate Administrator Ms Usha Rao Monari, hosted by Minister for Communications and Information Mrs Josephine Teo

From left to right: United Nations Assistant Secretary-General and United Nations Development Programme Assistant Administrator and Director of the Regional Bureau for Asia and the Pacific, Ms Kanni Wignaraja; United Nations Under-Secretary-General and United Nations Development Programme Associate Administrator Ms Usha Rao Monari; Minister for Communications and Information Mrs Josephine Teo; and Parliamentary Secretary, Ministry of Communications and Information Ms Rahayu Mahzam

Photo Credit: Ministry of Sustainability and the Environment, Singapore