September 22, 2023.- On September 20, with the participation of nearly 30 technicians from the region, the Technical Subgroup on Monitoring, Reporting and Verification (SGT-MRV) of the Pacific Alliance, with the support of the Center for Clean Air Policy (CCAP) and the Institute of the Americas, held the first of two virtual sessions on ‘Sustainable taxonomies: a key tool to strengthen monitoring, reporting and verification of climate finance’.
The objective of the session was to introduce and discuss the concept of sustainable taxonomies, present an overview of the state of development and implementation of taxonomies in the world and especially in Pacific Alliance countries, and discuss how these taxonomies can guide investments and transparency in line with the Paris Agreement. Some key messages were:
Sustainable taxonomies promote a common language in sustainable investments, aligning public and private actors on the type of actions to finance to meet the commitments of the Sustainable Development Goals and the Paris Agreement.
The global taxonomy landscape indicates that the movement towards sustainable finance investment and capital mobilization has led to an increase in green taxonomies around the world. Jurisdictions in Western Europe, Asia and the Pacific have made progress over the past three years in developing policy and technical aspects working towards a transparent reporting architecture for sustainable finance.
Although globally most taxonomies remain voluntary, there are exceptions such as China, the European Union and Malaysia. These are mandatory taxonomies in verification reporting. In the Pacific Alliance, Mexico is interested in making a taxonomy mandatory after the current piloting stage.
The report summarizing this first session (in Spanish), together with the recording and the exhibited presentations, can be found at the following link: https://alianzapacifico.net/wp-content/uploads/2023/09/Relatoria-sesion-1-CdP-Taxonomias.pdf