Developing a Sustainable Finance Taxonomy for Aotearoa New Zealand

This report presents design recommendations from an Independent Technical Advisory Group (ITAG) for the development of a Sustainable Finance Taxonomy for Aotearoa New Zealand. The proposed framework aims to mobilise capital toward a low-emissions, Paris-aligned future while restoring nature and upholding indigenous rights, with a strong emphasis on interoperability with the Australian taxonomy and the integration of iwi/Māori knowledge.

• The ITAG recommends that the NZ Taxonomy be guided by five core principles: Credibility (Mana), Usability (Whakamahi), Interoperability (Tuhono), Culture (Ahurea), and Prioritisation (Whakarite). A central tenet is that the rights and knowledge of iwi/Māori must be embedded into the taxonomy's design to reflect the culture of New Zealand.
• The primary purpose of the taxonomy is to serve as a classification system for economic activities to direct capital toward restoring nature, building a Paris-aligned low-emissions future, and upholding the rights and interests of indigenous people. Its environmental objectives will initially prioritise climate change mitigation, adaptation, and resilience, while also covering pollution prevention, circular economy transition, and the protection of biodiversity, ecosystems, and water/marine resources.
• Five priority sectors have been identified for the initial development of the taxonomy: Energy, Transport, Industrial Manufacturing, Construction & Real Estate activities, and Agriculture, Forestry & Fishery. To ensure alignment with the EU and Australia, the taxonomy should use the Australian and New Zealand Standard Industrial Classification (ANZSIC) system, creating ad hoc codes where granular activity-level data is missing.
• The ITAG proposes that the taxonomy's application be voluntary in its initial phase, with the possibility of becoming mandatory over time. It should be designed for diverse applications beyond debt markets, including corporate disclosures and investment fund alignment (such as KiwiSaver).
• Eligibility for the taxonomy should be based on binary, internationally recognised technical screening criteria (TSC), which may be supplemented by 'whitelists' of technologies when data is unavailable. The framework should prioritise 1.5-degree aligned 'green' activities but include a separate transition category for material sectors with no low-carbon alternative, potentially using a 'traffic light system' (Green, Amber, Red) to label these activities.
• A three-tiered governance structure is recommended to ensure transparency and scientific rigour: Tier One (an overseeing body for strategic direction and endorsement), Tier Two (a coordinating group of government, industry, and civil society), and Tier Three (technical working groups designing the content). To prevent conflict of interest, government funding should come from a different source than the Tier One oversight group.

APA

Climate Bonds Initiative (2024). Developing a Sustainable Finance Taxonomy for Aotearoa New Zealand. https://www.climatebonds.net/files/documents/publications/Developing-a-Sustainable-Finance-Taxonomy-for-Aotearoa-New-Zealand.pdf

Chicago

Climate Bonds Initiative. Developing a Sustainable Finance Taxonomy for Aotearoa New Zealand. 2024. https://www.climatebonds.net/files/documents/publications/Developing-a-Sustainable-Finance-Taxonomy-for-Aotearoa-New-Zealand.pdf.

Wikipedia

{{cite report |author=Climate Bonds Initiative |title=Developing a Sustainable Finance Taxonomy for Aotearoa New Zealand |date=2024 |url=https://www.climatebonds.net/files/documents/publications/Developing-a-Sustainable-Finance-Taxonomy-for-Aotearoa-New-Zealand.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatebondsinitiative2024developing, author = {{Climate Bonds Initiative}}, title = {{Developing a Sustainable Finance Taxonomy for Aotearoa New Zealand}}, institution = {Climate Bonds Initiative}, year = {2024}, url = {https://www.climatebonds.net/files/documents/publications/Developing-a-Sustainable-Finance-Taxonomy-for-Aotearoa-New-Zealand.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }