ASEAN Taxonomy for Sustainable Finance version 2 (ATSF v2) contains the completion of the Foundation Framework which contains a detailed methodology consisting of decision trees and guiding questions for all environmental objectives (EO) and essential criteria (EC) to assess an economic activity , as well as equipped with various use cases of taxonomy usage. ATSF v2 also includes a Plus Standard with the development of the Technical Screening Criteria (TSC) for the first focus sector, namely the energy sector. Plus Standard classifies an activity as Green, Amber Tier 2 and Amber Tier 3. The Green tier is aligned with other international taxonomies and refers to the Paris Agreement target (1.5 degrees Celsius). Meanwhile, Amber Tier 2 and Amber Tier 3 aim to encourage the transition of economic activity. ATSF v2 also highlights the importance of social aspects in the Taxonomy, by incorporating it as the third EC alongside “Do No Significant Harm” (DNSH) and “Remedial Measures to Transition” (RMT). ATSF is a global pioneer for a regional taxonomy that thoroughly considers coal phase-outs (CPOs) in order to play a role in decarbonization to achieve the goals of the Paris Agreement by providing tools that have a significant contribution to transition efforts.
Sustainability has become one of the main considerations in any financial sectors’ financing/investment. However, a convergence of understanding on terminologies is needed for the market players and a wider range of stakeholders. One of the objectives of sustainable finance policies is to ensure that all FSS and stakeholders are using a common vocabulary regarding sustainable finance. This also serves as a contribution to other ongoing efforts within the FSS in developing key terms and definitions in sustainable finance.
The Indonesian Green Taxonomy Edition 1.0 has been officially launched by the President of the Republic Indonesia at Annual Financial Services Industry Gathering 2022- 2022
The Phase II roadmap focuses on developing a comprehensive sustainable finance ecosystem and consists of 7 components, namely Policy, Product, Infrastructure, Market, Ministries/Agency Coordination, Non-Government Support, Human Resources, and Awareness.