In Malaysia, the SC together with Bank Negara Malaysia (BNM) will engage with a wide range of stakeholders in the energy sector to assess companies’ readiness to meet the technical screening criteria under the ASEAN Taxonomy. The results of these stakeholder consultations will be taken into consideration to finalise Version 2, which is set to take effect in early 2024.

This regional initiative supports Malaysia’s aspiration to achieve a net-zero greenhouse gases (GHG) emissions target as early as 2050, complementing the country’s green recovery agenda and National Investment Aspirations (NIA), among others.

Version 2, which was released on 27 March 2023, consists of the complete Foundation Framework and Technical Screening Criteria (TSC) for the first focus sector, namely, Electricity, Gas, Steam and Air Conditioning Supply sector (Energy sector) under the Plus Standard.

The SC Chairman, Dato' Seri Dr. Awang Adek Hussin said: “The SC welcomes the release of Version 2 of the ASEAN Taxonomy for Sustainable Finance. The refinement in Version 2 is a vital step in steering ASEAN as a region and its member states individually to transition towards sustainability.”

The Foundation Framework in Version 2 is also aligned with the Climate Change and Principle-based Taxonomy issued by BNM; and the environmental component of the Principles-Based Sustainable and Responsible Investment Taxonomy for the Malaysian Capital Market (SRI Taxonomy) issued by the SC last year. These taxonomies, collectively, will create opportunities and spur more investment flows, including foreign funds into the country.