KUALA LUMPUR (April 6): The Securities Commission Malaysia (SC) together with Bank Negara Malaysia (BNM) are engaging with stakeholders in the energy sector as the firms prepare to meet the technical screening criteria under the Asean Taxonomy for Sustainable Financing.

In a statement on Thursday (April 6), the SC said the results of these stakeholder consultations will be taken into consideration to finalise the Asean Taxonomy for Sustainability Financing (Version 2), which is set to take effect in early 2024.

Following the release of Version 2 last week, the SC will facilitate regional efforts being made by the Asean Taxonomy Board to conduct targeted stakeholder consultations, it added.

The SC said this regional initiative supports Malaysia’s aspiration to achieve a net-zero greenhouse gases emissions target as early as 2050, complementing the country’s green recovery agenda and National Investment Aspirations, among others.

Version 2, which was released on March 27, 2023, consists of the complete Foundation Framework and Technical Screening Criteria for the first focus sector, namely the electricity, gas, steam and air conditioning supply sector (energy sector), under the Plus Standard.

SC chairman Datuk Seri Dr Awang Adek Hussin said: “The SC welcomes the release of  Version 2 of the Asean Taxonomy for Sustainable Finance. The refinement in Version 2 is a vital step in steering Asean as a region and its member states individually to transition towards sustainability.”

The Foundation Framework in Version 2 is also aligned with the Climate Change and Principle-based Taxonomy issued by BNM, and the environmental component of the Principles-Based Sustainable and Responsible Investment Taxonomy for the Malaysian Capital Market issued by the SC last year.  

SC said these taxonomies, collectively, will create opportunities and spur more investment flows, including foreign funds into the country.