Taiwan’s Financial Supervisory Commission (FSC) has published a green and transition finance action plan to increase financial support for and the effectiveness of the country’s net zero transition. The new plan takes into account international trends to increase focus on transition finance, the FSC said, noting that the EU, Japan, and Singapore have already introduced transition finance policy frameworks or related guidelines and plans. It includes five core strategies, six areas of focus, and a total of 30 specific measures (including seven continuing measures from the Green Finance Action Plan 3.0). The new plan’s areas of focus include providing financial support for companies’ net zero transition by incorporating businesses’ voluntary emission reduction plans, commitments and offset projects into investment evaluations, and developing green and sustainable finance products. In addition, the FSC strategy aims to improve the collection and management of corporate climate emissions data, promote financial institutions’ disclosure of carbon reduction targets and strategies, and improve sustainable finance evaluation and cooperation mechanisms. The strategy further emphasises the importance of enhancing Taiwan’s international influence, including strengthening sustainable governance mechanisms and collaborating with international organisations to jointly promote related projects. “The financial market [since 2017] has moved from supporting investments in green industries to incorporating ESG factors into investment decisions and risk management strategies, promoting the flow of capital towards low-carbon industries and sustainable development,” the regulator said. The FSC added it will leverage government agencies, financial industry associations, financial training institutions, and non-profit organisations to help promote the development of Taiwan’s green and transitional finance.
