The benefits of local green taxonomies

The benefits of local green taxonomies

The benefits of local green taxonomies
Aramco's direct air capture pilot plant marks a significant milestone in its mission to reduce emissions. (File)
Short Url

As environmental, social, and governance investing expands rapidly across the globe, the framework for sustainable finance is becoming increasingly localized.

While the EU Green Taxonomy has provided a strong conceptual foundation for the environmental management of financial tools, the global scope of sustainability now demands more tailored regional approaches.

Many emerging markets and developing economies are preparing to attract green capital to support sustainable development. For them, localizing sustainable taxonomies is not only possible but essential.

Climate change is among the greatest global challenges, but its solutions must be grounded in local realities.

Environmental issues and development priorities vary widely by region. For example, Gulf Cooperation Council countries must diversify away from oil while simultaneously tackling acute water scarcity.

Some observers argue that the EU Taxonomy Regulation may not align with Saudi Arabia’s Vision 2030 economic diversification strategy, as it excludes key transitional elements such as blue hydrogen and carbon capture technologies.

Similarly, ASEAN countries heavily dependent on coal and vulnerable to climate impacts require sustainability frameworks that balance development with environmental responsibility.

Imposing one-size-fits-all standards — such as adopting the EU taxonomy wholesale — risks weakening national key performance indicators or discouraging investment in vital transitional sectors.

In response, various countries and regions have developed their own taxonomies aligned with local strategies.

China’s Green Bond Endorsed Project Catalogue, updated in 2021, is one of the most advanced systems outside the EU. Notably, it removed “clean coal” from the eligibility list — a move more consistent with global investor expectations and China’s target of carbon neutrality by 2060.

The ASEAN Taxonomy for Sustainable Finance, also introduced in 2021, uses a tiered system to reflect the differing development stages of member states.

A sustainable future will not be created by copy-and-paste regulation. It will be driven by innovation and tailored, context-specific solutions that align with global objectives.

Majed Alqatari

In the Middle East, Saudi Arabia’s Public Investment Fund has launched a sustainable finance framework that balances international standards with domestic priorities. The UAE has also issued its Green Bond and Sukuk Framework.

These efforts reflect a broader regional ambition — reinforced at COP28 — to establish the Middle East as a hub for green finance. Local taxonomies are being designed not only to address environmental goals but also to unlock access to capital.

For instance, HSBC reports that green and sustainable bond issuance in the Middle East and North Africa reached $18.7 billion in 2023 — a 42 percent increase from the previous year. Improved regulatory clarity played a significant role.

Localized taxonomies help de-risk sustainable investments by offering issuers certainty and investors credibility.

They provide a shared language through which market players — banks, asset managers, and regulators — can define and apply sustainable finance principles. Well-designed, transparent systems also improve access to international capital markets.

Investor demand for taxonomy-aligned disclosures is on the rise. A 2023 PwC survey found that 79 percent of institutional investors were willing to back companies with high-quality ESG taxonomies.

As a result, countries that implement robust, context-sensitive taxonomical frameworks can attract greater investor confidence and deeper pools of green capital.

Aligning with international frameworks like the International Platform on Sustainable Finance or the Climate Bonds Standard enhances compatibility and reduces the risk of greenwashing — a top concern in global regulation.

Ultimately, the future of sustainable finance lies not only in harmonization but in practical application. While the EU Taxonomy remains influential, the emergence of regional taxonomies is a welcome evolution.

These self-directed systems allow nations to pursue climate goals without hindering economic growth. But for them to succeed, they must be built on best practices and supported by policymakers, multilateral banks, and the private sector.

A sustainable future will not be created by copy-and-paste regulation. It will be driven by innovation and tailored, context-specific solutions that align with global objectives.

Majed Al-Qatari is a sustainability leader and ecological engineer experienced in advancing environment, social, governance and sustainability goals.


 

Disclaimer: Views expressed by writers in this section are their own and do not necessarily reflect Arab News' point of view

Harvard grads cheer commencement speakers who urge the school to stand strong

Harvard grads cheer commencement speakers who urge the school to stand strong
Updated 22 sec ago
Follow

Harvard grads cheer commencement speakers who urge the school to stand strong

Harvard grads cheer commencement speakers who urge the school to stand strong
  • Sustained by a $53 billion endowment, the nation’s wealthiest university is testing whether it can be a bulwark against Trump’s efforts to limit what his administration calls antisemitic activism on campus

CAMBRIDGE, Massachusetts: Harvard graduates celebrated commencement on Thursday at a pivotal time for the Ivy League school, cheering speakers who emphasized maintaining a diverse and international student body and standing up for truth in the face of attacks by the Trump administration.
Harvard’s battles with Trump over funding and restrictions on teaching and admissions presented another challenge for the thousands of graduates who started college as the world was emerging from a pandemic and later grappled with student-led protests over the war in Gaza.
“We leave a campus much different than the one we entered, with Harvard at the center of a national battle of higher education in America,” Thor Reimann told his fellow graduates. “Our university is certainly imperfect, but I am proud to stand today alongside our graduating class, our faculty, our president with the shared conviction that this ongoing project of veritas is one that is worth defending.”
Other schools face the loss of federal funding and their ability to enroll international students if they don’t agree to the Trump administration’s shifting demands. But Harvard, which was founded more than a century before the nation itself, has taken the lead in defying the White House in court and is paying a heavy price.
A school under threat
Among the Trump administration’s latest salvos was asking federal agencies to cancel about $100 million in contracts with the university. The government already canceled more than $2.6 billion in federal research grants, moved to cut off Harvard’s enrollment of international students and threatened its tax-exempt status.
Visa interviews for international students admitted to schools nationwide were halted on Tuesday, and Trump said Wednesday that Harvard should reduce its international enrollment from 25 percent to about 15 percent.
Sustained by a $53 billion endowment, the nation’s wealthiest university is testing whether it can be a bulwark against Trump’s efforts to limit what his administration calls antisemitic activism on campus, which Harvard sees as an affront to the freedom to teach and learn nationwide.
Citing campus protests against Israel as proof of “antisemitic violence and harassment,” the Trump administration has demanded that Harvard make broad leadership changes, revise its admissions policies, and audit its faculty and student body to ensure the campus is home to many viewpoints.
Harvard President Alan Garber disputed the government’s allegations, saying in a letter this month that the school is nonpartisan and has taken steps to root out antisemitism on campus. He insisted that Harvard is in compliance with the law, calling the federal sanctions an “unlawful attempt to control fundamental aspects of our university’s operations.”

Harvard President Alan Garber greets graduating seniors at the 374th Harvard Commencement in Harvard Yard in Cambridge, Massachusetts, on May 29, 2025. (AFP)

In response to the administration’s threats, Harvard has sued to block the funding freeze and persuaded a federal judge to temporarily halt the ban on enrolling international students. During a hearing in Boston on Thursday, the judge extended her order blocking the ban.
Calls for Harvard to stand strong
Garber didn’t directly touch on the Trump administration threats Thursday. But he did get a rousing applause when he referenced the university’s global reach, noting that it is “just as it should be.”
Others speakers were more direct. Speaking in Latin, salutatorian Aidan Robert Scully delivered a speech laced with references to Trump policies.
“I say this: ... Neither powers nor princes can change the truth and deny that diversity is our strength,” Scully said.
It was a sentiment echoed by Yurong “Luanna” Jiang, a Chinese graduate who studied international development. She described growing up believing that the “world was becoming a small village” and finding a global community at Harvard.
“When I met my 77 classmates from 32 different countries, the countries I knew only as colorful shapes on a map turned into real people, with laughter, dreams and the perseverance to survive the long winter in Cambridge,” she said of the other students in her program. “Global challenges suddenly felt personal.”
Now, though, she said she wonders whether her worldview is under threat.
“We’re starting to believe those who think differently, vote differently or pray differently, whether they are across the ocean or sitting right next to us, are not just wrong — we mistakenly see them as evil,” she said. “But it doesn’t have to be this way.”
Others weigh in
Dr. Abraham Verghese, a bestselling author and Stanford University expert on infectious diseases, opened his keynote address by saying he felt like a medieval messenger “slipping into a besieged community.” He praised Harvard for “courageously defending the essential values of this university and indeed of this nation,” and told students that more people than they realize have noticed the example they’ve set.
“No recent events can diminish what each of you have accomplished here,” Verghese said.
On Wednesday, basketball Hall of Famer and activist Kareem Abdul-Jabbar was the “Class Day” speaker, praising Harvard for standing up to the Trump administration and comparing Garber’s response to Rosa Parks’ stand against racist segregation.

Former NBA star Kareem Abdul-Jabbar (L) applauds UC Berkeley professor and writer Elaine Kim as she receives an honorary degree during the 374th Harvard Commencement in Harvard Yard in Cambridge, Massachusetts, on May 29, 2025. (AFP)

“After seeing so many cowering billionaires, media moguls, law firms, politicians and other universities bend their knee to an administration that is systematically strip-mining the US Constitution, it is inspiring to me to see Harvard University take a stand for freedom,” he said.
Brynn Macaulay, who received a master’s degree in public and global health, said she hopes such students will keep enrolling because they bring a wealth of knowledge and perspective.
“On a personal level, it feels like somebody is attacking people that I love and that I consider to be family,” she said.
Samartha Shrestha, a fellow public health graduate from Spokane, Washington, said it was disheartening to see the funding cuts’ impacts — one of his professors was laid off — and international students’ worrying.
“I’m hopeful that they’re able to continue getting an education from one of the best, if not the the best, universities in the whole world,” he said. “My hope and dream is that one day they do graduate, just like I did today, and get to carry on the Harvard tradition to bring change wherever they go in the world.”
 


Unilever’s Ben & Jerry’s calls war in Gaza a ‘genocide’

Unilever’s Ben & Jerry’s calls war in Gaza a ‘genocide’
Updated 24 min 14 sec ago
Follow

Unilever’s Ben & Jerry’s calls war in Gaza a ‘genocide’

Unilever’s Ben & Jerry’s calls war in Gaza a ‘genocide’
  • We stand with all who raise their voices against genocide in Gaza: statement

NEW YORK: The independent board of Ben & Jerry’s said the ongoing conflict in Gaza is a genocide, setting up the ice cream maker for another tussle with its London-based corporate parent Unilever.
“Ben & Jerry’s believes in human rights and advocates for peace, and we join with those around the world who denounce the genocide in Gaza,” the board said in a statement viewed by Reuters. “We stand with all who raise their voices against genocide in Gaza-from petition-signers to street marchers to those risking arrest.” 


Russia accuses ally Serbia of betrayal for supplying arms to Ukraine

Russia accuses ally Serbia of betrayal for supplying arms to Ukraine
Updated 27 min 10 sec ago
Follow

Russia accuses ally Serbia of betrayal for supplying arms to Ukraine

Russia accuses ally Serbia of betrayal for supplying arms to Ukraine
  • Serbian arms exports to Ukraine have long been known since 2023, but it’s not clear why the Russian foreign security service decided to react now
  • Serbia denied it exported arms to Ukraine after Moscow demanded to know if it had delivered rockets for Ukraine’s fight against Russia’s invasion

 

BELGRADE, Serbia: Russia on Thursday accused Serbia of exporting arms to Ukraine, saying it’s a stab in the back by its longtime Slavic Balkan ally.
“Serbian defense enterprises, contrary to the ‘neutrality’ declared by official Belgrade, continue to supply ammunition to Kyiv,” the Russian Foreign Intelligence Service, SVR, said in a statement.
The statement alleged that the export of the Serbian arms to Ukraine are going through NATO intermediaries, “primarily the Czech Republic, Poland and Bulgaria. Recently, exotic options involving African states have also been used for this purpose.”
Serbia’s populist President Aleksandar Vucic told the state RTS television that he has recently discussed the issue of the arm exports to Ukraine with Russian President Vladimir Putin and that it was agreed that the two countries form a “working group” to establish how Serbian-made weapons reach the Ukrainian frontlines.
Serbian arms exports to Ukraine, mostly the Soviet-era-caliber ammunition still used by Ukraine’s defense forces, have long been known since 2023, but it’s not clear why the Russian foreign security service decided to react now.
In March, Serbia denied it exported arms to Ukraine after Moscow demanded to know if it had delivered thousands of rockets for Ukraine’s fight against Russia’s invasion.
The SVR statement said the arms sales are being carried out through a “simple scheme using fake end-user certificates and intermediary countries” serving as “a cover for anti-Russian actions.”
It added: “The contribution of Serbian defense industry workers to the war unleashed by the West, the outcome of which Europe would like to see as a ‘strategic defeat’ of Russia, amounts to hundreds of thousands of shells ... as well as a million rounds of ammunition for small arms.
“It is unlikely that such supplies can be justified by ‘humanitarian considerations.’ They have one obvious purpose — to kill and maim Russian military personnel and the civilian population of Russia.
“It seems that the desire of Serbian defense industry workers and their patrons to profit from the blood of fraternal Slavic peoples has made them completely forget who their real friends are and who their enemies are.”
The attacks on Serbia from the East and West “are frequent because it leads autonomous and independent policies,” Vucic said.
Although claiming he wants Serbia to join the European Union, Vucic has maintained close relations with Russia. He defied EU warnings and attended Russia’s Victory Day parade in Moscow on May 9. EU officials said that it was inappropriate for Vucic to stand side by side with Putin, considering Moscow’s invasion of Ukraine.
Vucic has said his decision to attend the parade, which marked the World War II victory over Nazi Germany, was part of efforts to maintain “traditional friendships” — Russia is a fellow Slavic and Orthodox Christian nation — while seeking EU entry.
Serbia, which relies almost fully on Russia for its energy supplies, has refused to join Western sanctions on Russia imposed after the full-scale invasion of Ukraine and hasn’t supported most EU statements condemning the aggression.
 


Saudi crown prince, Canadian prime minister discuss bilateral relations

Saudi crown prince, Canadian prime minister discuss bilateral relations
Updated 45 min 27 sec ago
Follow

Saudi crown prince, Canadian prime minister discuss bilateral relations

Saudi crown prince, Canadian prime minister discuss bilateral relations

RIYADH: Crown Prince Mohammed bin Salman and Canadian Prime Minister Mark Carney shared a call on Thursday and discussed bilateral relations.
They discussed prospects for cooperation between the two countries, and opportunities to develop and enhance it in all fields, the Saudi Press Agency reported.
The pair also reviewed the situation in the Middle East, agreeing on the need for sustainable peace in the region.
Carney was victorious in a May election after taken over as prime minister in March following the resignation of his predecessor Justin Trudeau. 
The crown prince and Carney discussed energy security and deepening trade between Riyadh and Ottawa, according to a readout from the Canadian premier’s office. 
Both leaders agreed to remain in close contact, it read. 


Russia-Ukraine talks ‘barely’ alive, says United Nations official

Russia-Ukraine talks ‘barely’ alive, says United Nations official
Updated 56 min 9 sec ago
Follow

Russia-Ukraine talks ‘barely’ alive, says United Nations official

Russia-Ukraine talks ‘barely’ alive, says United Nations official
  • “Cautious hope” for truce diminished in face of recent “brutal surge in largescale Russian attack, says official
  • Russia launched its largest drone attack Monday on Ukraine since the start of its full-scale invasion

UNITED NATIONS: Hope is “just barely” alive in the negotiations between Russia and Ukraine, a senior UN official said Thursday, denouncing the recent “brutal surge in largescale Russian attacks” against Ukraine.
UN Under-Secretary-General for Political Affairs Rosemary DiCarlo told the Security Council that the “cautious hope” she expressed a month ago has diminished in the face of recent aggressions.
“According to Ukrainian officials, with 355 drones, Monday’s attack was the largest drone attack on Ukraine since the start of Russia’s full-scale invasion,” DiCarlo said, adding: “This topped the previous record from the night before.”
Despite no declaration of a ceasefire, DiCarlo praised diplomatic efforts in Istanbul on May 16 when Ukrainian and Russian delegations met, saying “it is encouraging that the sides have reportedly agreed to continue the process.”
Russia’s deadly invasion began in February 2022.
“The massive wave of attacks over the weekend is a stark warning of how quickly this war can reach new destructive levels. Further escalation would not only aggravate the devastating toll on civilians but also endanger the already challenging peace efforts,” DiCarlo said.
“The hope that the parties will be able to sit down and negotiate is still alive, but just barely,” DiCarlo said.
The US representative added that prolonging the war was not in anyone’s best interest.
“If Russia makes the wrong decision to continue this catastrophic war, the United States will have to consider stepping back from our negotiation efforts to end this conflict,” said John Kelley, acting US alternate representative.
“Additional sanctions on Russia are still on the table.”
The Kremlin said Thursday that it was awaiting Kiev’s response to its proposal for new talks in Istanbul next Monday.
Ukraine, which accuses Russia of buying time, seeks Moscow’s conditions before any meeting.
“Serious, demonstrable and good faith efforts are needed — now — to get back on the road that could lead to a just peace. A full, immediate and unconditional ceasefire is such an effort, if only an initial one,” DiCarlo said.
According to the UN, a “just peace” respects sovereignty and the territorial integrity of Ukraine.
“A peace process will not be easy, and it will take time. But it must not wait. The people of Ukraine, especially, cannot wait.”
 

OSZAR »