Strengthen Definitions: Singapore-Asia Taxonomy

Providing clarity on what constitutes sustainable and transition financing will help to reduce the risk of green or transition washing.

The Singapore-Asia Taxonomy (SAT), which clarifies what activities can be considered green or transitioning towards green, was launched in December 2023. It is the first taxonomy globally to pioneer the concept of a “transition” category and can facilitate the flow of capital in a way that is contextualised for the Asian region.

The Monetary Authority of Singapore has mapped the SAT to the International Platform for Sustainable Finance’s Multi-jurisdiction Common Ground Taxonomy (M-CGT). This enhances the interoperability of the SAT alongside the EU Taxonomy and People’s Bank of China’s Green Bond Endorsed Project Catalogue.

This will support more cross-border sustainable financing solutions that are aligned with the SAT and M-CGT.

SAT clarifies what activities can be considered green or transitioning towards green.