The Executive Yuan approved the Green Finance Action Plan on November 6, 2017 in response to the international trend toward green finance, as well as to complement the commitments to a nuclear-free homeland, Taiwan's energy transformation, and the reduction of carbon emissions. The action plan covers such areas as credit, investment, fundraising in capital markets, training and talent development, data transparency, the further expansion of green finance products and services, and the spread of sustainable, environmentally friendly concepts. The expectation is that financial resources will increasingly be injected into green industries and green consumer culture, creating an all-around win for the financial sector, real industries and society at large.
Key measures
◆ Encourage banks in Taiwan to extend credit to startups in such important fields as green technology.
◆ Persuade banks to voluntarily adopt international Equator Principles, which dictate that impacts to society, the environment and other areas be considered in credit risk assessment and decision-making.
◆ Relax rules and regulations governing lending and raising capital; for example, allowing branches of foreign banks in Taiwan to issue New Taiwan dollar-denominated bonds and other such financial instruments.
◆ Develop Taiwan's green bond market.
◆ Utilize corporate governance assessment mechanisms to induce listed companies to issue green bonds.
◆ Encourage the insurance industry to invest capital in green energy companies.
◆ Loosen rules and regulations governing indirect investment in green energy by insurers.
◆ Open more channels for investment in public works and green energy projects by such entities as private equity funds, venture capitalists and venture fund management firms.