Australia has officially launched its sustainable finance taxonomy, a key development designed to align the country’s financial system with its net zero ambitions.
Released by the Australian Sustainable Finance Institute (ASFI), the framework provides financial institutions and businesses with a voluntary, Paris-aligned classification system tailored to Australia’s unique economic and environmental needs.
The taxonomy allows organisations to confidently assess the credibility of green claims and channel investments into projects that genuinely support the country’s decarbonisation. It reflects 20 months of intensive collaboration, led by an independent technical body with input from the Australian Treasury, regulators, industry experts, and civil society groups.
ASFI CEO Kristy Graham said, “The release of the taxonomy marks a transformative moment for Australia’s sustainable finance market and a key achievement under the Australian Government’s Sustainable Finance Roadmap. The 20-month development process has been rigorous and collaborative, led by an independent expert decision-making body with strategic oversight from the Australian Treasury and financial regulators. It reflects deep technical input and extensive engagement across finance, industry and civil society.
“To unlock global finance for Australia’s key green and transition sectors, the taxonomy had to be internationally credible and locally relevant. In a world-first, it includes sectors such as minerals, mining and metals, and it also sets expectations for engagement with First Nations peoples and cultural heritage management. ASFI will now work with Australia’s leading financial institutions to pilot the taxonomy in real-world investment decisions.”
Dr Guy Debelle, co-chair of the Taxonomy Technical Body, highlighted the long-term importance of the framework, stating, “The taxonomy offers a clear, science-aligned guide to help direct capital towards Australia’s green economic transformation by reducing uncertainty and strengthening investor confidence. It can also evolve over time as technology, policy and the economy shift. The taxonomy’s release is the foundation for a credible and resilient sustainable finance market in Australia.”
A pilot programme is already underway, involving major financial players including ANZ, CEFC, Commonwealth Bank of Australia, HESTA, Moody’s Ratings, NAB, Rabobank, Rest and Westpac. The pilot will test real-world applications of the taxonomy, helping refine the framework based on market feedback.
The Climate Bonds Initiative, a global leader in sustainable finance standards and a partner in developing the taxonomy, will incorporate aspects of the framework into its Certification Scheme to ensure global consistency.
Climate Bonds Initiative CEO and co-founder Sean Kidney said, “Australia’s Sustainable Finance Taxonomy is a shopping list of investments for the future. Climate Bonds Certification will now be able to confirm adherence to both the Australian and the Climate Bonds Taxonomies. This will support investor confidence in the credentials of sustainable financial investments.”
Source: https://fintech.global/
