The response to the ASEAN Taxonomy Version 2 had been largely positive, and the bulk of the feedback received pertained to suggestions on improving clarity in definitions and usability of the ASEAN Taxonomy Version 2. Where relevant, these have been incorporated in the updated iteration of Version 2, which will be effective from 19 February 2024.
Revisions made in the ASEAN Taxonomy Version 2 to address the afore-mentioned input, where relevant, include:
In the Main Report:- Clarification of the definitions and criteria for Environmental Objectives and Essential Criteria under the Foundation Framework.
- Updated Guiding Principles for all Environmental Objectives.
- Inclusion of the list of Red Activities from Appendix J in the ASEAN Taxonomy Version 1 (now as Appendix G in the ASEAN Taxonomy Version 2).
- The Grandfathering Rules covering green bonds and other green financial instruments. These rules consider practices in other markets and the evolving landscape of sustainable finance within ASEAN to encourage the flow of capital to support decarbonisation of the region.
In Annex 1:- Finalised criteria for Coal Phase Out.
- Inclusion of future technical screening criteria for Electricity, Gas, Steam and Air Conditioning Supply (Energy) activities as indicative thresholds.
In Annex 2:- Finalised Do No Significant Harm (DNSH) Guiding Principles.
- Streamlined DNSH criteria for three Environmental Objectives namely Climate Change Mitigation, Protection of Healthy Ecosystems and Biodiversity and Resource Resilience and the Transition to a Circular Economy.
The ATB hopes that these amendments will provide greater clarity for users of the ASEAN Taxonomy. Further, 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 of the ASEAN Taxonomy.
The ASEAN Taxonomy Version 2 can be found at the following websites:
CHAIR
ASEAN Taxonomy Board
