A key workshop on the Development of a Sustainable Finance Taxonomy in Tanzania has been conducted today in Dar es Salaam, spearheaded by the European Union and the Capital Markets and Securities Authority Tanzania (CMSA).

The workshop served as a platform to disseminate the findings of a comprehensive report by an international team and to lay down an action plan for development of a Sustainable Finance Taxonomy for Tanzania. This initiative is part of the EU's commitment to supporting the development of sustainable financial systems within the country.

“Key among the objectives was to acquaint Tanzanian stakeholders with the uses and advantages of a localized sustainable taxonomy” said Cedric Merel Head of Cooperation, EU Delegation to Tanzania. “This tool is intended to define what constitutes 'sustainable' economic activities and to guide investment towards environmentally and socially beneficial projects.”

“The development of a Sustainable Finance Taxonomy provides a clear framework for investors and companies to contribute positively to our nation's environmental and social targets. CMSA is proud to be at the forefront of this initiative, ensuring that our financial practices pave the way for a sustainable future for Tanzania, reflective of our unique challenges and opportunities.” said Alfred Mkombo, the Director of Research and Policy, CMSA.

The workshop addressed the process and benefits of such a taxonomy, including supporting the achievement of national environmental and social policy goals, provide science-based, clear criteria for green investment decisions, and facilitating sustainable finance products like Green Bonds.

Set against a background of global movement towards sustainable financial practices, the report underscored Tanzania’s alignment with over 30 nations actively developing similar frameworks. It emphasized the need for a taxonomy that not only aligns with global standards such as those set by the EU but also reflects Tanzania's unique environmental and socio-economic contexts.

The agenda invited participants to strategic discussions on the proposed taxonomy's scope, including priority sectors like agriculture, energy, and water services, and stressed the importance of a science-based, practical, and regularly updated taxonomy.

This workshop marks the beginning of a series of engagements aimed at fostering sustainable development in Tanzania's financial sector and contributing to the country’s broader sustainability goals.