Regulatory Alerts2023-01-01
Circular - Banks - Sustainable Finance and Climate-Related Risks - 2023
The High Technical Committee's Public Authority issued this circular to classify sustainable loans and financing within macroeconomic activities. It establishes eight designated resource categories—renewable energy, energy efficiency, information technology, agriculture and land, waste management, green buildings, public utilities, and the health sector—each with specific operational criteria. Financial institutions must align their portfolios and risk assessments with these classifications to ensure compliance with regulatory standards and promote long-term economic sustainability.
1 High Technical Committee : Public Authority
First Classification of Sustainable Loans and Financing within Macro Economic Activities:
.1 Renewable/Clean Energy (Energy Renewable): Resources that aim for sustainability without depleting emissions (such as clean energy resources, wind and marine wave energy, and fresh/clean water energy from changes). .2 Energy Efficiency (Energy Efficiency): Resources that aim to maximize and sustain lower energy consumption for the same facility or building (such as utilizing clean energy in HVAC systems, replacing less efficient ventilation with energy-saving active systems, and utilizing hybrid vehicles). .3 Information Technology Resources (Information Technology), such as high-tech resources, retail/tech trade, electronics, and emerging technology resources, in addition to related impacts. .4 Agricultural and Land Resources (Land Conservation and Agriculture), such as land/forest rehabilitation, clean/smart agriculture, fisheries resources, organic material processing/treatment resources, and electrical power resources. .5 Waste Management Resources (Waste Management): Resources that aim to reduce, collect, manage, and recycle waste for reuse/treatment/disposal (such as solid/waste liquid management, marine water treatment plants, recycling of solid waste and exhaust gases). .6 Green Buildings (Green Building): Refers to newly constructed and/or retrofitted existing buildings that comply with the High Technical Committee's Public Authority regulations No. 7 (1999) and amendments, applicable systems/regulations, or meet World Green Building Council standards/guidelines, or are approved by international/local systems in the green building sector (such as the IFC EDGE system, which aims to assess and certify green building performance based on energy efficiency across construction/operation phases). .7 Green Public Utilities and Services (Public Utilities and Services): Resources such as constructing green infrastructure, public lighting, reducing emissions, and conserving/utilizing energy resources. .8 Health Sector (Health Sector): Resources that aim to enhance public health services (such as water treatment/air quality systems, pharmaceutical/green infrastructure resources, and early warning systems for heat/cold).