With a plethora of green and sustainable finance taxonomies under development all over the world and citing experiences in the LACC, EU and South-East Asian (ASEAN) regions, a recent Coalition event demonstrated that approaches are converging.

On Tuesday, July 11, the Coalition hosted the “Green Transition Taxonomies” seminar under the Green Transition workstream. Speakers highlighted the relevance of taxonomies to follow overarching guiding principles, while recognizing differences in national priorities (e.g., NDCs) and limitations (e.g., affordability) that translate into different decarbonization starting points and trajectories. Taxonomies shall seek interoperability with other existing taxonomies; provide material positive contribution to well-defined objectives while avoiding harm to other objectives and sustainability goals; offer clear definitions that are science-based for the environment or evidence-based for other sustainability issues; undertake credible transition of high-emission and hard to abate sectors with a clearly defined goal; be living documents, dynamic in nature to reflect changes in policies, technologies, and state of transitions, and thus subject to regular reviews; and to ensure adequate governance, transparency, and practical applicability.

By providing consistency and credibility, taxonomy principles can facilitate an orderly and effective transition, drive better allocation of capital and transition, and strengthen demand and supply for sustainable finance, which was referred to as a virtuous cycle. In that regard, it was emphasized that taxonomies must be suitable to all types of investments, from public to private, from small to large, from equity to debt, including among others, the use of proceeds and bonds. At the same time that investment at scale and the shift towards low-carbon technologies under the green transition can lead to the creation of new jobs and growth prospects, some existing carbon-intensive technological expertise might become redundant and jobs might be lost (i.e., stranded jobs). To avoid potentially significant social and economic disruptions under a disorderly transition, ministries of finance, central banks, and capital market regulators – aligned with line ministries – shall recognize and address these impacts, as well as “just transition” protective measures in the green transition taxonomy itself.

In addition to regional approaches, the event benefited from case studies from two countries at distinct stages of taxonomy implementation, Indonesia and Australia. As Indonesia counts with an advanced green taxonomy in place and mainstreamed into its climate commitments and economic development goals, Australia is currently developing its robust sustainable finance taxonomy, which follows an approach broadly consistent with the approaches outlined for ASEAN EU, LACC and Indonesia, and corroborates the convergence of approaches.


  • Opening Remarks:
    • Ms. Masyita Crystallin, Senior Advisor, Ministry of Finance Indonesia.
  • Speakers:
    • Ms. Nancy Saich, Chief Climate Change Expert, European Investment Bank (see presentation here);
    • Ms. Maria Mercedes Farina, Program Manager, UNEP (see presentation here);
    • Ms. Charlotte Landolfini, Climate Change Expert, International Monetary Fund ;
    • Mr. Eugene Wong, CEO, Sustainable Finance Institute Asia (see presentation here);
    • Mr. Noor Syaifudin, Head, Climate Change Funding Subdivision, Fiscal Policy Division, Ministry of Finance Indonesia (see presentation here);
    • Ms. Yuki Yasarani, Senior Analyst, Department of Surveillance and Integrated Policy, Indonesian Financial Services Authority (see presentation here).
  • Final Remarks:
    • Mr. Warren Tease, Chief Adviser Financial Markets, Australia Treasury.

Other Relevant Resources: