TAIPEI (Taiwan News) – The Financial Supervisory Commission announced on Thursday that its Green and Financial Transformation Action Plan has surpassed NT$5.30 trillion (US$167 billion), reaching 88% of its NT$6 trillion target for 2030, according to an FSC press release.
The plan launched in 2024 and coordinates ministries and institutions across capital, data, disclosure, management, ecosystem, and global outreach to achieve low-carbon transformation. The commission has provided incentives and made regulatory adjustments so that insurers can better fund strategic industries.
Breaking the numbers down, green lending stood at NT$2.16 trillion, sustainability-linked lending at NT$2.12 trillion, domestic sustainability bonds at NT$932.1 billion, and insurance investment in renewable power plants at NT$86.5 billion. The commission said figures are the result of credit expansion and market activities tied to decarbonization and ESG financing.
Corporations that comply with the net-zero initiative receive financial incentives. The effectiveness of their environmental policy is evaluated by the environmental, sustainability, and governance framework, and they must periodically submit reports to competent authorities.
FSC Department of Development and Innovation Deputy Director Shih I-chun (施宜君) said any policy adjustments would reflect market developments, per CNA. Shih said policy targets were set after assessing the state of green financing.
The commission revised insurers’ capital rules to ensure steady investments in infrastructure and sustainable industries. The commission arranged for private and venture capital to flow into sustainable industries via hybrid investments to increase participation.
A hybrid investment is a derivative that combines aspects of debt and equity that can be leveraged to balance risks and rewards. An example is convertible bonds, which can be converted into stock.
For capital markets, the commission launched a green securities certification in April, handled by the Taiwan Stock Exchange for added transparency, per the Commercial Times. The mechanism helps investors identify companies aligned with the initiative and finance them accordingly.
For risk assessment, the commission has partnered with Academia Sinica's Center for Sustainability Science for predictive indicators on natural disasters. A platform launched in April has helped financial institutions to identify and assess climate risks, so that the corporations they fund may adjust policies to reduce environmental impact.
The commission will continue to refine policies based on global and domestic trends as it progresses toward the NT$6 trillion goal by 2030.
