MAS task force opens public consultation on 2nd Green and Transition Taxonomy
The second version details criteria and thresholds for three sectors.
The MAS-convened Green Finance Industry Taskforce (GFIT) has published the second version of its Green and Transition Taxonomy for public consultation which details thresholds and criteria for economic activity of three sectors namely energy, transport, and real estate.
Feedback can be sent via https://abs.org.sg/industry-guidelines/gfittaxonomy-public-consultation until 23 June 2022.
In total, the taxonomy will cover eight sectors which collectively account for close to 90% of ASEAN greenhouse gas emissions. The criteria and threshold for the five reaming sectors will be released for public consultation in late 2022, and the final full taxonomy in 2023.
Under the guide, economic activities are classified as green, amber, or red, depending on their contribution to climate change mitigation.
If an activity gets a green classification it means that it contributes "substantially to climate change mitigation by operating at net-zero, or are on a pathway to net-zero by 2050," while an amber classification represents activities that are "either transitioning towards green within a certain time frame or facilitating significant emissions reductions in the short term."
On the other hand, A red classification means that the activity is not currently compatible with a net-zero trajectory.
Apart from the thresholds and criteria for the three sectors, the newer version also incorporates a user guide for financial institutions and companies to apply the taxonomy. It includes detailed guidance on the reporting of a company’s revenue, capital expenditures and operating expenditures that are aligned with the taxonomy criteria.