Aotearoa New Zealand opens first public consultation on its draft Sustainable Finance Taxonomy

Aotearoa New Zealand (NZ) is taking a major step toward aligning its financial system with climate and sustainability goals. The Centre for Sustainable Finance: Toitū Tahua (CSF), in partnership with the New Zealand Government, has opened the first public consultation on the country’s draft Sustainable Finance Taxonomy.

Taxonomies are vital tools that financial institutions, corporates and governments can use to direct capital towards more sustainable outcomes. They also help prevent greenwashing, guide government incentives, attract international green capital, and align with key trading partners’ regulations and standards. 
 
Why This Matters for New Zealand 
 
A clear, credible taxonomy gives financial institutions, corporates, investors, and policymakers a common framework for identifying sustainable investments, and tracking progress towards climate goals. For Aotearoa New Zealand, this is especially important. With a natural environment highly exposed to climate risks and an economy closely tied to land use, it’s vital that capital is directed towards activities that reduce emissions, build resilience, and protect ecosystems — all the while honouring Te Tiriti o Waitangi and incorporating Te Ao Māori perspectives. 
 

What’s in the Draft? 
 
The draft NZ Taxonomy sets out a framework to classify economic activities according to their contribution to key environmental goals — beginning with Climate Change Mitigation, and Adaptation and Resilience (A&R). 

The first phase focuses on agriculture and forestry, sectors that are central to Aotearoa New Zealand’s emissions profile, land use, exports, and the Māori economy. These were prioritised by the Independent Technical Advisory Group (ITAG), composed of local and international experts, due to their significant knowledge and experience in climate science, policies, investment decision-making and economics , as well as their deep interconnection with nature and Indigenous values.  

Importantly, because many countries and  jurisdictions are only now beginning to design criteria for forestry and agriculture, Aotearoa New Zealand is well positioned to lead and help shape credible international standards in those sectors. 

The draft also presents the overarching structure and design principles of the taxonomy — providing a scalable foundation for expansion into sectors like energy, transport, manufacturing, and the built environment in future phases. 
 

A Collaborative, Expert-led Process 
 
The Climate Bonds Initiative was originally selected by the CSF to provide technical support during the second phase of the NZ Taxonomy’s development. Our involvement included: 

• Supporting the development of the ITAG Recommendations Report, helping ensure it reflects both local context and international best practice;
• Preparing and facilitating ITAG meetings and materials to enable expert alignment across a range of technical and policy topics;
• Advising on trans-Tasman alignment and global interoperability 

In 2023–2024, the CSF convened the ITAG to design the draft framework. The ITAG’s Recommendations Report, which covers 10 key areas, was delivered to the Minister for Climate Change and made public in July 2024. 
 
 
Get Involved 

On 7 May 2025, CSF held a public webinar to help participants prepare to respond to the public consultation. You can view a video recording of the webinar here.  
 
The consultation is now open and will run until July 13, inviting feedback on key elements of the draft taxonomy: on: 
 

  A second round of public consultations to include criteria for A&R is expected later in the year, and a final version of the taxonomy is anticipated by November 2025.  
 

‘Til Next Time 

Climate Bonds