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Common Framework of Sustainable Finance Taxonomies for Latin America and the Carribbean��Working Group on Sustainable Finance Taxonomies of Latin America and the Caribbean�

Interagency Technical Committee - Forum of Ministers of Environment of Latin America and the Caribbean

11 April 2023

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Content

State of play

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Working Group on Sustainable Finance Taxonomies in LAC

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Common Framework of Sustainable Finance Taxonomies for LAC

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Work plan and timeline

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Next steps

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State of play

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More than 35 taxonomy projects worldwide, hence the importance of interoperability

State of play - Sustainable Finance Taxonomies

Source: IFC

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Working Group on Sustainable Finance Taxonomies in LAC

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Working Group on Sustainable Finance Taxonomies in LAC

Objective

Created as part of the Interagency Technical Committee (ITC) of the Forum of Ministers of Environment of LAC with the aim of promoting regional dialogue to support LAC authorities in developing sustainable finance frameworks that are interoperable across LAC jurisdictions and internationally.

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Common Framework of Sustainable Finance Taxonomies for LAC

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Common Framework of Sustainable Finance Taxonomies for LAC

  • Aims at supporting relevant LAC member states in developing sustainable finance taxonomies;
  • Establishes a set of guiding principles that will improve comparability and ensure interoperability of sustainable finance taxonomies in LAC and internationally;
  • Focuses on climate change objectives; prioritizes sectors that are important to these objectives for the LAC region

Objective

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Common Framework of Sustainable Finance Taxonomies for LAC

Scope

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Common Framework of Sustainable Finance Taxonomies for LAC

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Guiding Principles

Structural elements

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Common Framework of Sustainable Finance Taxonomies for LAC

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Guiding Principles

GP-1

GP-2

GP-3

GP-4

GP-5

GP-6

Seek interoperability with other regional and global taxonomies

Material positive contribution to well-defined objectives and avoid damage

Clear definitions that science-based for environment or evidence-based for other sustainability issues

Credible transition of high emission sectors with a clearly defined final goal, regardless of the pathway

Dynamic and subject to regular reviews

Ensure adequate governance, transparency and practical applicability (usability)

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Work Plan and Timeline

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Workplan and Timeline

1. Inception report

Deliverable 1: Development of the project work plan and methodology.

2. Current status of green taxonomies

Deliverable 2: Research on the current state of development of green taxonomies in LAC and globally.

3. Stakeholder consultations

Review the report with relevant parties and incorporate comments.�Deliverable 3: Current status report with built-in comments.

4. Common Framework of Taxonomies for LAC

Deliverable 4: Guidance note and development of the common taxonomy framework (road map) taking into account current developments, stakeholder engagement and research conducted.�

5. Revision of the Common Framework

Deliverable 5: Incorporation of comments and stakeholder review.

6. Final Report

Entregable 6: Finalización del marco de la Taxonomía de ALC, con la incorporación de los comentarios de las partes interesadas.

7. Publication

Publication of the report together with translated versions, if necessary, by the LAC Taxonomy Working Group

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WE ARE HERE

Expert Consultation – until December 22, 2022

March 2022

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Next steps

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2023/2024 Work Plan (under discussion)

  • Provide policy advise to LAC policymakers, financial supervisors and regulators, and central banks that are developing their taxonomies and disclosure frameworks on how to use the LAC Taxonomy Common Framework (the importance of interoperability);
  • Capacity building and dissemination activities for Lac policymakers, financial supervisors and regulators, and central banks on sustainable finance taxonomies and disclosures frameworks, includes an interoperability module based on the use of the LAC Taxonomy Common Framework
  • Organize high-level policy dialogues: Roadmap through 2023 to COP28 - from a technical work (LAC Taxonomy Common Framework) towards a political Decision/Declaration

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2023-2024 advocacy moments for the LAC region

UNEA 6

Feb-March 2024

May

Jan

2024

LACCW

Panama

HLO

ITC

2023

Bureau

XXIII Forum of Ministers of Environment

24 -27 October

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Feb

Mar

Apr

Jul

Aug

Sept

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Nov

Dec

2024

ITC

GRULAC Permanent Representatives

Bureau

HLO

Bureau= Bureau meeting of the Forum of Ministers of Environment of LAC

HLO = High-Level Officers Meeting of the Forum of Ministers of Environment of LAC

ITC = Interagency Technical Committee Meeting of the Forum of Ministers of Environment of LAC

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HLO

COP28

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Thank you

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