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

The Centre for Sustainable Finance: Toitū Tahua (CSF), in partnership with the New Zealand Government, has launched the second public consultation on the draft Aotearoa New Zealand Sustainable Finance Taxonomy (NZ Taxonomy). The consultation runs from 22 September to 17 October 2025.
 

What is new in this consultation

This round introduces draft criteria for climate change Adaptation and Resilience (A&R) in agriculture and forestry, two sectors that are critical to Aotearoa New Zealand’s emissions profile, exports, and Māori economy. These criteria do not have an emissions reduction component. Instead, they enable financing for activities that can allow farms and forestry activities to become more resilient to, and adapt to, the impacts of climatic changes.

Alongside these new criteria, updates to the climate change mitigation criteria, first consulted on in June and July 2025, are also open for review. That first consultation attracted 48 submissions from agriculture and forestry industry bodies, financial institutions, NGOs, and other stakeholders.
 

Focus of this consultation

Feedback is being sought particularly on the following areas:

• New climate change Adaptation and Resilience (A&R) Substantial Contribution criteria using a process-based approach and whitelist of eligible investments
• Changes to Do No Significant Harm criteria, including new criteria for mitigation and arable land under the A&R objective of the Taxonomy
• A phased and streamlined approach to Do No Significant Harm and Minimum Social Safeguards
• The whole-of-farm transition activity
   

Examples of A&R investments  that could qualify as taxonomy-aligned include restoring native ecosystems, investing in early warning systems, managing invasive pests, strengthening emergency preparedness, and adapting farm infrastructure such as shading or water supply for livestock.
 

Why this matters for New Zealand

The NZ Taxonomy is a voluntary classification system for sustainable economic activities. By setting clear definitions and criteria, it reduces greenwashing risks, lowers transaction costs, and guides capital towards sustainable and transition-aligned investments.

This work supports New Zealand’s broader climate commitments to reduce emissions and build resilience in line with its long-term net zero objectives. The urgency of this agenda is underscored by recent disasters, from Cyclone Gabrielle in 2023 to the Otago floods in 2024 and the South Island floods and landslides in 2025, which highlight the need for greater investment in A&R.
 

Climate Bonds’ role in New Zealand and worldwide

The Climate Bonds Initiative (Climate Bonds) has supported the NZ Taxonomy development process by providing technical input to the Taxonomy’s Technical Expert Group (TEG) and Technical Working Group (TWG) for to the design of the process-based approach and list of automatically eligible investments. Our role has been to ensure that the Taxonomy reflects local needs while aligning with global best practices.

Beyond New Zealand, Climate Bonds has been a leading partner in taxonomy development across Asia, Africa, Latin America, and Oceania. Our work includes supporting taxonomies in Thailand, Laos, Australia, Colombia and West Africa, as well as advancing global interoperability efforts and tools.
 

What is next

The final NZ Taxonomy report is expected in November 2025. This will provide a comprehensive science-based framework to guide investment towards a low-emissions and climate-resilient economy.
 

Get Involved

Feedback is invited from across the agricultural, forestry, and financial sectors, including Māori, farmers, and other stakeholders.
Submissions to the consultation can be made by 17 October via sustainablefinance.nz.

‘Till the next time, 
Climate Bonds