ASEAN TAXONOMY FOR SUSTAINABLE FINANCE
ASEAN Taxonomy for Sustainable Finance
Taxonomy and Supplementary Guidance
Revisions
versions
The ASEAN Taxonomy
Supplementary Guidance
This guidance is meant to be read in conjunction with the ASEAN Taxonomy main document.
Revisions
Revisions | Activity | Title | Revision | Endorsed On | Issued On |
|---|---|---|---|---|---|
1/2024 (Annex 1) | 351 [071] | Transmission and distribution (T&D) of electricity | The revision was made to enhance the interoperability of the TSC with other widely used international taxonomies such as the EU Taxonomy and the Singapore-Asia Taxonomy. The revision for the Green tier is as follows: 1. T&D infrastructure or equipment is part of a System where: a. >67% of new generation capacity which achieved commercial operation on the System over a five-year rolling period is ‘Green’; OR b. emissions intensity &<;100 gCO2e/kWh for the System measured on a life cycle basis over a rolling five-year period; | 25 April, 2024 | 03 May, 2024 |
2/2024 (Annex 1) | TSC for Construction and Real Estate | Bases for setting TSC Environmental Objective 4: Resource Resilience and the Transition to a Circular Economy | The revision was made to refine the basis of the TSC in order to achieve Environmental Objective 4 (EO4). The revision for the Amber Tier 2 basis is as follows: Activity supports a transition towards a Green pathway within a defined time frame; AND Results in a contribution to the EO which is at least as good as the technology which results in the lowest possible waste production which is currently technologically and economically feasible for widespread use in ASEAN; OR Results in achieving the best reduction in EUI from a building construction and implementation plan. | 27 May, 2024 | 04 June, 2024 |
Overview
The ASEAN Taxonomy is a multi-tiered overarching guide and common language used to identify and classify sustainable projects and economic activities in ASEAN.
It consists of two frameworks: the Foundation Framework and the Plus Standard.
An economic activity that seeks to be classified using the ASEAN Taxonomy must demonstrate that it significantly contributes to at least one of the environmental objectives and fulfils the requirements of all three essential criteria.
Background
Given the various economic structures and stages of development across ASEAN, which result in different starting points and pathways, there is a need for a taxonomy that is customised to ASEAN’s context. This taxonomy will serve as a common reference for green and transition activities throughout the region and facilitate collective investments and financing for ASEAN’s sustainable activities.
The ASEAN Taxonomy provides a regional voice that will be clearly heard by the international community. It consolidates efforts by ASEAN central banks, capital market regulators, insurance regulators, and financial agencies, thus ensuring an integrated and holistic sustainable finance ecosystem. Additionally, it provides consistency and credibility, securing global acceptance of sustainable investments in ASEAN. It serves as the overarching guide for all ASEAN Member States (AMS), complementing their respective national sustainability initiatives and facilitating equivalence among national AMS taxonomies.
Who will use the ASEAN Taxonomy?
Users
- Governments
- Regulators
- Banking Institutions
- Asset Managers
- Real Economy Participants
- Rating Agencies
- Second Party Opinion Providers
- Industry Associations
Uses
- Bond Issuance
- Transition Finance
- Identifying Sustainable Investees
- Sustainability Reporting
- Developing Sustainable Lending products of Identifying Eligible Borrowers
- Definition of ESG Benchmarks/ Indices and Identification of Constituents
- Assisting Real Economy Participants in Identifying Sustainable Investments
- Supporting Risk Management by Providing Credible Benchmark
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