The ASEAN Taxonomy Board (ATB) releases today the updated iteration of the ASEAN Taxonomy for Sustainable Finance (ASEAN Taxonomy) Version 3, which considers feedback and suggestions received from stakeholder consultation exercises that concluded in October 2024. The ASEAN Taxonomy Version 3, which includes technical screening criteria for the Construction & Real Estate and Transportation & Storage sectors had been first published in March this year. This updated ASEAN Taxonomy Version 3 takes effect on 20 December 2024.

The ATB is encouraged by the positive responses from stakeholders, which mainly centered on refining the definitions, improving the usability of ASEAN Taxonomy, and strengthening awareness and capacity-building initiatives for its implementation. Stakeholders also emphasised the importance of mutual recognition and credibility of taxonomies, calling for greater interoperability amid the growing number of taxonomies and guidances in existence. Where appropriate, these have been incorporated in the updated iteration of Version 3.

Key revisions made to the ASEAN Taxonomy Version 3 include:

• Terminologies used in the Technical Screening Criteria (TSC) for Construction & Real Estate; namely:

• Clearly defining levels of recognition required to achieve the Green tier; and
• Providing a non-exhaustive list of local and global green building certifications (GBCs) to enhance clarity.

• Terminologies used in the TSC for Transportation & Storage, namely:

• Clarifying the terms related to technological and economical feasibility, the transport of
  fossil fuels, infrastructure, and alternative fuels
• Emphasising the current basis of water transport activities

The ATB believes that these amendments provide greater clarity for users of the ASEAN Taxonomy. Further, 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.

The ATB has also developed a Frequently Asked Questions (FAQ) document in response to stakeholder feedback to promote understanding and adoption of the ASEAN Taxonomy. This FAQ serves as a practical guide to address common queries, clarify the taxonomy’s purpose and application, and support its socialisation and uptake across the region. The FAQ is designed as a living resource, regularly updated to incorporate the latest developments, insights, and feedback from stakeholders.

Alongside the FAQ, the ATB has published new SME Use Cases for the ASEAN Taxonomy, covering the construction, agriculture, and manufacturing sectors to enhance usability and adoption, building on findings from stakeholder consultations and earlier versions. These use cases serve as practical references, designed to facilitate and encourage greater adoption and application of the Taxonomy by SMEs.

The effective iteration of the ASEAN Taxonomy Version 3 adds to the TSC for the Energy sector, Carbon Capture, Utilisation & Storage and Coal Phase-Out made effective earlier this year, and together with the FAQ and new SME Use Cases, contributes to the ASEAN Taxonomy’s usability as a regional guide and classification system for sustainable activities.

The ASEAN Taxonomy Version 3, FAQ, and Use Cases for SMEs can be found at the following websites:

• Sustainable Finance Institute Asia – https://www.sfinstitute.asia/asean-taxonomy/
• Association of Southeast Asian Nations – https://asean.org/
• ASEAN Capital Markets Forum – https://www.theacmf.org/sustainable-finance/publications