Indonesia's COVID-19 Vaccination and Economic Resilience Strategy
Green Taxonomy
.
Proposed
Definition of Green
Taxonomy
Classification of sectors based on business activities that support environmental
protection and climate change mitigation and adaptation.
The Green Taxonomy is used as a guideline for information disclosure in the Financial Services Sector and can be used
as a reference for creating innovative sustainable financial products and/or services.
In developing the Green Taxonomy, OJK actively participates in the Financial Stability Board, particularly regarding
sustainable financial disclosure for Financial Services Institutions in the Financial Stability Board - Workstream on Climate
Disclosures/WSCD and the ASEAN Taxonomy Board.
The finalization of the Green Taxonomy involved 43 Directorate Generals in 8 related ministries to confirm the thresholds
and to categorize around 2,700 sectors and sub-sectors classification.
Green
Taxonomy
Definition
Green taxonomy is a classification system
that establishes a list of environmentally
sustainable economic activities.
(EU Green Taxonomy, 2019)
A classification tool for the financial industry (banking)
to protect the environment and reduce greenhouse gas
emissions.
(China Green Catalogue, CBRC, 2013).
Benefits of
Green
Taxonomy
As a guideline for allocating capital, a tool to support risk assessment, and a reference for other
stakeholders in supporting efforts to mitigate and adapt to climate change.
In its development, the green taxonomy is flexible and dynamic so that it can adapt to investment
strategies and patterns and changes in technology, science, activities and new data.
Source: Financial Services Authority (OJK)
(ASEAN Taxonomy for Sustainable Finance ver.1, Nov 2021)
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