The Monetary Authority of Singapore, the People's Bank of China and the European Commission's Directorate-General for Financial Stability, Financial Services and Capital Markets Union jointly published the Multi-Jurisdiction Common Ground Taxonomy in November 2024 at the COP29 climate summit. The taxonomy, referred to as the M-CGT, maps the green activities eligible under each of the three jurisdictions' existing classification systems and identifies the areas of common ground across all three frameworks simultaneously, providing the market with a practical cross-border reference point.
The M-CGT shows where China's green standards, the EU Taxonomy for Sustainable Activities and Singapore's green finance frameworks converge.
PURPOSE OF THE TAXONOMY
The M-CGT is intended to facilitate cross-border green loans, bond issuance and fund investment across the three jurisdictions, although it does not create formal mutual recognition.
The EU and China have been engaged in comparative taxonomy work under the International Platform on Sustainable Finance (IPSF) since 2021, with Singapore joining for the M-CGT, building the bilateral and trilateral mapping exercises that formed the foundation for the M-CGT.
SCOPE
The taxonomy's initial coverage focuses on the activity classifications where Chinese, EU and Singapore definitions overlap most clearly.