ASEAN FINANCE SECTORAL BODIES RELEASE ASEAN TAXONOMY FOR SUSTAINABLE FINANCE VERSION 2

KUALA LUMPUR, March 27 (Bernama) -- The Asean Taxonomy Board (ATB), representing Asean finance sectoral bodies, has today released the Asean Taxonomy for Sustainable Finance Version 2 (version 2). 

In a statement, ATB said while the first version laid out the broad framework of the Asean Taxonomy, version 2 consisted of the complete foundation framework comprising detailed methodologies for assessing economic activities.

“It also comprises technical screening criteria (TSC) for the first focus sector, i.e. the electricity, gas, steam and air conditioning supply sector (the energy sector) under the Plus Standard. 

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“Version 2 builds on the conceptual thinking of the multi-tiered framework outlined in version 1. 

“The multi-tiered framework is intended to facilitate the transition of Asean member states recognising the diversity in economic development, financial sector, and infrastructure maturity,” it said.

ATB said through the foundation framework, which adopted a principles-based approach, users would be able to qualitatively assess economic activities using guiding questions, decision trees and use cases for all four environmental objectives and three essential criteria (EC). 

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“Version 2 also highlights the importance of social aspects in the taxonomy, by incorporating it as the Asean Taxonomy’s third EC, alongside ‘Do No Significant Harm’ (DNSH) and ‘Remedial Measures to Transition’ (RMT). 

“In combination with other features such as the expansion of the DNSH criteria, common building blocks are established to enable an orderly and just transition and foster sustainable finance adoption by Asean countries,” it added.

ATB said the release of version 2 had demonstrated its commitment to providing stakeholders with a common framework that was science-based while being inclusive and catering to the different development stages of member states.

Following the release of version 2, ATB said it would hold targeted consultations with key stakeholders on the assessment methodology as well as the metrics and TSC for the energy sector under the Plus Standard. 

ATB said it intended to finalise the TSC for the energy sector in early 2024 following the consultations.

“TSCs for the remaining five focus sectors covered under the Plus Standard would be released in phases, with TSC for all six focus sectors finalised by 2025,” it added.

-- BERNAMA