Southeast Asia to establish its own framework for green investments, but natural gas remains a feature

(Eco Business, 19 Apr 2021) Southeast Asia is establishing a green finance rulebook to bring greater accountability to sustainable investments. Balancing the needs of countries that have different ambitions to cut carbon emissions will be a major test.

The Association of Southeast Asian Nations (ASEAN), which makes policy frameworks for a region of 650 million people, is expected to be influenced by what is happening in Europe, where a deadlock over natural gas inclusion is testing its own taxonomy plans.  

ASEAN, a block of 10 member states in Southeast Asia, says its classification system for investors will also have to address the region’s specific needs, including the fact that it is still heavily reliant on coal.

It plans to introduce a set of categories and definitions to identify environmentally sustainable economic activities and investment opportunities with a progress report on the framework’s development expected by the end of this year. 

“It will be designed to ensure that ASEAN member states have a framework that suits their economic and social structures that other frameworks will not be able to address,” the bloc’s finance minister and central bank governors (AFMGM) said on 30 March in a joint statement.

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Eco Business, 19 Apr 2021: Southeast Asia to establish its own framework for green investments, but natural gas remains a feature