April Global Regulatory Brief: Green Finance

Key Takeaways

• South Africa's FSCA seeks comments on ESG rating regulation by 30 April 2026
• Japan's JFSA opens consultation on revised SSBJ standards, clarifying Scope 3 financed emissions
• EU Commission asks ESAs to simplify Taxonomy KPIs, targeting Q1 2027 amendments
• Vietnam's Decree 112 enables international carbon credit transfers, requiring registry recording
• New green‑finance rules raise compliance costs while aiming to curb green‑washing

Pulse Analysis

The pace of green‑finance regulation is accelerating as policymakers align capital with climate goals. In Africa, the FSCA’s discussion paper is one of the first attempts to codify ESG rating providers, meaning firms will soon need to certify the methodology behind published scores. In Japan, the Financial Services Agency opened a consultation on revised SSBJ standards, tightening Scope 3 financed‑emissions definitions while allowing flexible industry classification. Companies must revisit ESG data pipelines and submit feedback before the April 30 deadline.

Europe is tackling the complexity of its taxonomy disclosures by targeting the most burdensome key performance indicators. The European Commission’s request for ESA advice focuses on simplifying OpEx reporting for non‑financial firms and refining commission‑and‑fee and trading‑book KPIs for banks, as well as underwriting metrics for insurers. By aligning these KPIs with IFRS accounting standards and allowing sector‑specific materiality, the upcoming Q1 2027 amendment aims to reduce reporting friction while preserving the taxonomy’s credibility. Financial institutions that adapt early can leverage clearer metrics to demonstrate taxonomy‑aligned financing and mitigate green‑washing accusations.

Vietnam’s Decree 112/2026 creates a legal bridge for the country to participate in global carbon markets. By mandating government‑approved transfers, corresponding‑adjustment accounting and a national registry, the framework seeks to prevent double‑counting while unlocking up to 90 % of high‑cost project reductions for international sale. The allowance for Article 6.2, 6.4 and recognized standards gives developers flexibility, but also imposes rigorous disclosure and approval steps. For multinational investors, the decree offers a new source of verified credits, yet they must navigate Vietnam’s registration process and volume caps to integrate these assets into broader climate‑portfolio strategies.