Developing a Sustainable Finance Taxonomy for Aotearoa New Zealand

The report outlines 18 recommendations from an Independent Technical Advisory Group (ITAG) for creating a sustainable finance taxonomy in Aotearoa New Zealand. Key proposals include a three-tiered governance structure, the adoption of the ANZSIC classification system, and a focus on five priority sectors: Agriculture, Forestry & Fishery, Transport, Construction & Real Estate, Energy, and Industrial Manufacturing. The framework emphasizes interoperability with international standards, particularly the Australian Taxonomy, and the integration of iwi/Māori knowledge and rights. It suggests a voluntary initial application phase and the inclusion of a 'transition' category, potentially using a traffic light system to label activities moving toward a 1.5-degree pathway.

• The proposed NZ Taxonomy is based on five core guiding principles: Credibility (Mana), Usability (Whakamahi), Interoperability (Tuhono), Culture (Ahurea), and Prioritisation (Whakarite).
• The taxonomy's primary purpose is to serve as a classification system for economic activities to direct capital toward restoring nature, upholding indigenous rights, and building a Paris-aligned, low-emissions future.
• The ITAG recommends prioritizing five specific economic sectors for the development of the taxonomy: Energy, Transport, Industrial Manufacturing, Construction & Real Estate activities, and Agriculture, Forestry & Fishery.
• To ensure alignment with the EU and Australian taxonomies, the NZ 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 taxonomy should initially be voluntary, with the possibility of becoming mandatory after a grace period or phase-in approach.
• The framework should prioritize 1.5-degree aligned 'green' activities but include a separate transition category for material sectors with no low-carbon alternative, potentially utilizing a traffic light system for labeling.
• The ITAG recommends a three-tiered governance structure: Tier One for strategic direction and endorsement (Government body), Tier Two for coordination (Government, iwi/Māori, industry, and civil society), and Tier Three for technical design (technical working groups).
• To maintain integrity and limit political influence, the report suggests that government funding for the taxonomy be sourced from a different agency 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} }