The ASEAN Taxonomy Board (ATB) has released the second version (V2) of the ASEAN Taxonomy for Sustainable Finance. V2 of the framework builds on the conceptual thinking of the multi-tiered framework outlined in V1, which was published in November 2021 and set out the broad framework of the ASEAN Taxonomy, which looks to facilitate the transition of ASEAN Member States recognising the diversity in economic development, financial sector, and infrastructure maturity. V2 of the framework also highlights the importance of social aspects in the taxonomy, by incorporating them as the ASEAN Taxonomy’s third essential criteria, alongside “Do No Significant Harm” (DNSH) and “Remedial Measures to Transition” (RMT). It consists of the complete principles-based Foundation Framework comprising detailed methodologies for assessing economic activities and Technical Screening Criteria (TSC) for the first focus sector of the Electricity, Gas, Steam and Air Conditioning Supply sector under the Plus Standard, which adds metrics and thresholds to further qualify and benchmark eligible green activities and investments. In considering ASEAN’s specific circumstances, the taxonomy recognises efforts toward the early retirement of coal-fired power plants, which the ATB said provides a “powerful tool” for transition when “approached correctly”. Following these consultations, the ATB intends to finalise the TSC for the Energy sector in early 2024. TSCs for the remaining five focus sectors will be released in phases and all finalised by 2025.
Version 2 highlights the importance of social aspects, expands the DNSH criteria, and recognises efforts to retire coal plants early.https://t.co/vBmKFpvo6w
— Regulation Asia (@RegulationAsia) March 28, 2023