Singapore’s Green Finance Industry Taskforce (GFIT) has issued its third and final public consultation on a green and transition taxonomy for Singapore-based financial institutions. The consultation builds on two earlier rounds of consultations in January 2021 and May 2022 by GFIT and seeks views on thresholds and criteria for five sectors. GFIT intends to publish the final taxonomy by the end of H1 2023. The multi-stakeholder group, convened by the Monetary Authority of Singapore to accelerate the development of green finance in the city-state, – has adopted a traffic light classification system to differentiate an activity’s contribution to climate change mitigation, one of five environmental objectives under the taxonomy. A green classification means that activities that contribute substantially to climate change mitigation that is consistent with a net zero outcome or are on a pathway to net zero by 2050. An amber classification represents transition activities, including those that are either transitioning towards green within a certain time frame, or enabling significant emissions reductions in the short term, while a red classification represents harmful activities that are not currently compatible with a net zero trajectory. The five sectors the consultation seeks views on are agriculture and forestry/land use, industrial, waste and water, information and communications technology, and carbon capture and sequestration. The consultation is open to comment until 15 March 2023.
