Asean Taxonomy Board Releases Asean Taxonomy For Sustainable Finance - Version 3 For Transportation And Construction Sectors


Kuala Lumpur, 27 March 2024

The ASEAN Taxonomy Board (ATB) today released Version 3 of the ASEAN Taxonomy for Sustainable Finance (ASEAN Taxonomy), a significant milestone in the development of its overarching taxonomy to advance sustainable finance practices across the region. The ASEAN Taxonomy adopts a multi-tiered framework which allows assessment of sustainable activities through either the principles-based Foundation Framework, or the Plus Standard with a more detailed methodology using application of technical screening criteria (TSC).

Having published TSC for Electricity, Gas, Steam and Air Conditioning Supply (Energy) sector in ASEAN Taxonomy Version 2, the ASEAN Taxonomy Version 3 introduces TSC for two more focus sectors, namely Transportation & Storage and Construction & Real Estate. The new focus sectors cover activities including construction and renovation of buildings, demolition and site preparation, and acquisition and ownership of buildings, as well as urban and freight transport, and infrastructure for land, water, and air transport, among others.

The Green tiers for these new focus sectors have been aligned, where appropriate with relevant sectoral guidelines and regulations (e.g. International Maritime Organisation (IMO) 2023 GHG Emissions strategy, International Green building certifications), to ensure that the ASEAN Taxonomy remains credible, interoperable, and inclusive while reducing regulatory fragmentation. The Green tier of the ASEAN Taxonomy continues to make reference to widely used international taxonomies such as the EU Taxonomy and where relevant, will be tailored according to ASEAN’s unique circumstances. The Amber tiers serve as a transition category, providing a useful stepping stone for companies to learn and make adjustments to their activities in pursuit of the Green tier.

In addition to the new TSC, the ASEAN Taxonomy Version 3 also includes refinements to the Annexes that provide more clarity to the user. The changes include:

  • Annex 2: Additional clarification and worked examples for the Life Cycle Assessment (LCA) checklist.
  • Annex 3: Additional clarification and worked examples for the Climate Risk and Vulnerability Assessment (CRVA) checklist.
  • Annex 5: Updated national social regulations for Indonesia, Malaysia and the Philippines.
  • Annex 6: Updated national environmental regulations for Indonesia and Malaysia.

Commenting on the release of the ASEAN Taxonomy Version 3, Mdm. Noorrafidah Sulaiman, Chair of the ATB, emphasized the significance of this achievement: “The release of Version 3 marks a significant step forward in our collective efforts to accelerate sustainable development and responsible investment practices in the ASEAN region. The issuance of the TSC for Transportation & Storage and Construction & Real Estate underscores our unwavering commitment to fostering sustainability. We look forward to engaging with stakeholders to ensure the rigour and practicality of the Taxonomy.”

The ATB hopes that this latest version will provide greater clarity for users of the ASEAN Taxonomy. Further, consistent with ASEAN’s aspirations to facilitate a just and orderly transition, the ASEAN Taxonomy will continue to be reviewed and updated in line with evolving technological, scientific, and economic developments. Following this release, the ATB will conduct targeted consultations with key stakeholders and users of the ASEAN Taxonomy. This approach ensures the ASEAN Taxonomy remains robust, relevant, and responsive to the evolving needs of the ASEAN community. TSC for the remaining focus and enabling sectors covered under the Plus Standard will be released next year.

The ASEAN Taxonomy Version 3 is now available for download on the following websites:

ASEAN Taxonomy Board
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