Updated ASEAN Taxonomy Takes Effect

A new iteration of the ASEAN Taxonomy for Sustainable Finance went live on 19 February, following a consultation last November. The ASEAN Taxonomy Board (ATB) said the new version took account of feedback on enhancing clarity in definitions and usability. Building on the first iteration, published in November 2021, changes in the second version were designed to recognise diversity in economic development, financial sector, and infrastructure maturity across ASEAN member states. Version 2 features the completed foundation framework and offers detailed methodologies for assessing various economic activities. It also provides technical screening criteria for focus sectors such as electricity, gas, steam, and air conditioning supply, as well as the carbon capture, utilisation and storage-enabling sector. “Consistent with ASEAN’s aspirations to facilitate a just transition, the ASEAN Taxonomy will continue to be reviewed and updated in line with evolving technological, scientific, and economic developments, and in consultation with key stakeholders and users,” the ATB stated. The ASEAN Taxonomy serves as an inclusive, science-based classification system for sustainable activities, aiming to attract financial flows into sustainable projects across the region. It was jointly initiated by the ASEAN Capital Markets Forum, the ASEAN Insurance Regulators Meeting, the ASEAN Senior Level Committee on Financial Integration and the ASEAN Working Committee on Capital Market Development.

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