Sustainable finance taxonomy for New Zealand

A sustainable finance taxonomy is a framework for classifying economic activities according to their environmental performance, and can help investors identify and invest in activities which are sustainable.

Developing a sustainable finance taxonomy for New Zealand will give investors and everyone interacting with the market clarity and confidence on which economic activities are 'green' or sustainable. This can help us move to a low emissions economy.

In 2024, the Minister of Climate Change received non-binding advice and recommendations from the Independent Technical Advisory Group (ITAG) via Toitū Tahua - the Centre for Sustainable Finance. This advice detailed options for the design of a credible sustainable finance taxonomy that is fit for New Zealand. The ITAG’s advice is available  here. [Centre for Sustainable Finance website]

Based on these recommendations, the Minister of Climate Change agreed to continue developing the taxonomy and work with Toitū Tahua - the Centre for Sustainable Finance.

Work has commenced on the development of climate mitigation, adaptation and resilience criteria for the agriculture and forestry sectors through an independent advisory function made up of a taxonomy Technical Expert Group and a forestry and agriculture Technical Advisory Group.

Toitū Tahua - the Centre for Sustainable Finance will lead public consultation on the criteria for the agriculture and forestry sectors. Find out more about the development of New Zealand's sustainable finance taxonomy, including timelines, governance, engagement opportunities and how to register for updates on the taxonomy here. [Centre for Sustainable Finance website]