The Monetary Authority of Singapore (MAS) has introduced the Singapore-Asia Taxonomy for Sustainable Finance, which aims to define green and transition economic activities across key sectors. The taxonomy covers eight sectors representing 90% of the region’s emissions, including Energy, Real Estate, Transportation, Agriculture and Forestry/Land Use, Industrial, Information and Communication Technology, Waste/Circular Economy, and Carbon Capture and Sequestration. It is the first system to introduce a “transition” category and uses a “traffic light” system to differentiate between Green, Amber (transition), and ineligible activities. The taxonomy also encourages investment in decarbonization measures to support a sustainable transition. MAS collaborated with the Green Finance Industry Taskforce for this initiative.
Singapore-Asia Taxonomy: https://www.mas.gov.sg/-/media/mas-media-library/development/sustainable-finance/singaporeasia-taxonomy-dec-2023.pdf