Monetary Authority of Singapore Announces Taxonomy Including “Transition” Category for Eight Focus Sectors

On December 3, 2023, the Monetary Authority of Singapore (MAS) announced the Singapore-Asia Taxonomy on Sustainable Finance (hereinafter referred to as “Singapore-Asia Taxonomy”). In Asia, where economic development, population growth, and energy demand are increasing significantly, MAS believes that the two categories of “green” and “non-green” in the taxonomy are not sufficient as a financial approach for the transition to a net-zero economy, and showed the detailed criteria for the “transition” category in addition to green in the Singapore-Asia Taxonomy.