The Monetary Authority of Singapore (MAS) has launched the Singapore-Asia Taxonomy for Sustainable Finance, aiming to define green and transition economic activities across eight focus sectors. The taxonomy, covering 90% of the region's emissions, includes a "traffic light" system differentiating between Green, Amber (transition), and ineligible activities. It introduces a "transition" category, adapting criteria based on the EU Taxonomy, and a "measures-based approach" to encourage investment in decarbonization. The taxonomy aims to combat "green or transition washing" risks, allowing financial institutions to disclose alignment with financed activities. It is the latest initiative globally, following similar systems in the EU, UK, and Australia.

Source: ESGTtoday