The Financial Supervisory Commission (FSC) launches the "Green Finance Action Plan 3.0" today. The Action Plan contains five key measures that aim to intensify sustainable development in Taiwan and attain the goal of net zero transition: (1) call for financial institutions to implement GHG inventory and climate risk management; (2) develop the Taiwan Sustainable Taxonomy; (3) integrate ESG and climate-related information; (4) enhance sustainable finance training; and (5) establish cooperation mechanisms in the finance industry to form a consensus.
The FSC has promoted "green finance" since 2017 from the Action Plan 1.0 in 2017 to the Action Plan 2.0 in 2020 and the Action Plan 3.0 announced today. Action Plan 1.0 mainly focuses on encouraging financial institutions to invest and finance the green energy industry and Action Plan 2.0 covered green and sustainability concepts. The FSC stated that Action Plan 2.0 has caught the attention of the market after its rollout. In cooperation with related government authorities, the FSC has enhanced the ESG information disclosure quality and transparency, established the prototypes for Taiwan Sustainable Taxonomy, guided financial institutions to expand their investment and financing from the green energy industry to the green and sustainable development fields, and cultivated the climate risks resilience of financial institutions.
The FSC stated that, to counter the threat of climate change, President Tsai has proclaimed "Net Zero Emissions by 2050" as a global objective as well as Taiwan's objective in April 2021. The National Development Council also announced the "Taiwan’s Pathway to Net-Zero Emissions in 2050" in March 2022 and incorporated "green finance" as one of the 12 key strategies in the Pathway. As sustainable development and net zero emissions have become core objectives of policies across the globe and in Taiwan, the Green Finance Action Plan must actively meet the development requirements in order to respond to policies at home and abroad and development trends.
Before the launch of Green Finance Action Plan 3.0, the FSC has referenced the sustainable measures implemented by international financial authorities and sought recommendations provided by financial institutions, self-regulatory organizations, non-profit organizations, and experts with the aim of consolidating the powers of the government and the private sector to strengthen the role of financial institutions. The Action Plan calls for the GHG inventory of their investment and loan positions, assessments of risks and business opportunities, and strategic planning to drive the low-carbon transition of companies, disclose related climate information, and spur the transition to a low-carbon or zero-carbon economy in Taiwan.
The FSC stated that the vision of Green Finance Action Plan 3.0 is to "integrate financial resources to support net zero transition," and which is to be accomplished with 3 core strategies and 5 implementation aspects with 26 specific measures (4 measures are continuation of Action Plan 2.0). The main contents are as follows:

1. 1.Objectives: Build consensus in the financial industry, propose and develop guidelines and information the financial industry needs, promote the financial industry to complete GHG emissions inventory of its own operations and its investments and loan positions, help the financial industry take action and grasp climate related risks and opportunities, and support the sustainable development of financial industry and help enterprises to reduce carbon emissions.
2. 2.Core Strategies:
   1. (1)Collaboration to promote sustainable development.
   2. (2)GHG emission disclosure and financing for carbon reduction
   3. (3)Data integration to strengthen resilience and risk management
3. 3.Implementation Aspects:
   1. (1)Deployment: The FSC will implement 5 measures that aim to promote financial institutions to assess carbon emissions from their own business operations and their investment and loan positions, develop medium and long-term carbon reduction objectives and strategies, and to formulate strategies and respond to climate-related risks by evaluating and identifying the potential impact of climate risks on individual financial institutions and the overall market.
   2. (2)Funding: The FSC will implement 7 measures that aim to develop and promote Taiwan Sustainable Taxonomy, to encourage companies to refer to the Taxonomy when formulating transition plans and to facilitate financial institutions incorporating it in making lending or financing decisions and continuing to invest in green and sustainable development fields to promote the development of green and sustainable economic activities and markets in Taiwan.
   3. (3)Data: The FSC will implement 6 measures that aim to integrate and optimize of climate change and ESG-related information and data for the use and analysis of financial institutions and help companies, stakeholders, and investors understand the progress of sustainable finance in Taiwan, and to encourage the overall society to support and implement sustainable finance.
   4. (4)Empowerment: The FSC will implement 3 measures that aim to encourage financial institutions to strengthen the training and cultivation of sustainable finance talents and to incorporate the concept of sustainable finance into the organization and culture of financial institutions from top to bottom, and expand it to influence industries and the society as a whole to accelerate the advancement of the net zero transition in Taiwan.
   5. (5)Ecosystem: The FSC will implement 5 measures that aim to foster cooperation between financial institutions, encourage financial institutions to actively review climate change and ESG-related issues, analyze international practices, promote FinTech innovation and applications in green finance, consolidate a consensus and increase incentives of financial institutions, and promote larger financial institutions to lead smaller ones to broaden and deepen the influence of sustainable finance to improve the sustainable finance ecosystem.

4. 4.Implementation methods: In light that the Action Plan covers a wide range of aspects, and shall be jointly implemented by different government agencies and require medium to long-term study and planning, the FSC will integrate the power of related government agencies, associations of the financial industry, training institutions, self-regulatory organizations, and non-profit organizations to jointly promote the development of green and sustainable finance in Taiwan.

The FSC stated that Green Finance Action Plan 3.0 will be implemented on the basis of the previous Action Plans to encourage the financial market and the industry as a whole to attach importance to climate change, strengthen the climate resilience of the financial institutions and the industry, and leverage the influence of the financial sector to intensify and support the sustainable development and net zero transition.
Contact unit: Department of Planning
Telephone: (02)8968-0032
If you have any questions, please send an email to: https://fscmail.fsc.gov.tw

Attachment 1: Green Finance Action Plan 3.0
Attachment 2: Green Finance Action Plan 3.0 ppt