The ASEAN Taxonomy Board (ATB) released the ASEAN Taxonomy for Sustainable Finance (ASEAN Taxonomy) – Version 1. By introducing a common language across ASEAN for financing sustainable economic activities, ASEAN finance sectoral bodies have taken a significant step towards meeting Paris Agreement commitments.
The ASEAN Taxonomy represents the collective commitment of ASEAN Member States (AMS) in transitioning towards a sustainable region. It is designed to be an inclusive and credible classification system for sustainable activities. Furthermore, the ASEAN Taxonomy will be one of the key building blocks in attracting investments and financial flows into sustainable projects in the region.
The ASEAN Taxonomy recognizes international aspirations and goals and takes into consideration the region's unique needs and as such, aims to be inclusive and beneficial to all AMS. To cater for AMS' diversity, the ATB has decided upon a multi-tiered approach with two main elements, a principles-based Foundation Framework that provides a qualitative assessment of activities, and a Plus Standard with metrics and thresholds to further qualify and benchmark eligible green activities and investments.
Version 1 will provide a frame for discussions with official sector and private sector stakeholders to work together on the development of the ASEAN Taxonomy. It can be found at the following websites:
Association of Southeast Asian Nations – http://asean.org/wp-content/uploads/2021/11/ASEAN-Taxonomy.pdf
ASEAN Finance Cooperation Web Portal - http://afcwp.asean.org/wp-content/uploads/2021/11/ASEAN-Taxonomy.pdf
ASEAN Capital Markets Forum – https://www.theacmf.org/initiatives/sustainable-finance/asean-taxonomy
Sustainable Finance Institute Asia – http://www.sfinstitute.asia/wp-content/uploads/2021/11/ASEAN-Taxonomy.pdf
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