Draft Design Recommendations On A Green Taxonomy For Aotearoa NZ Released For Public Feedback: Deadline Approaching

The Centre for Sustainable Finance (CSF) has published the draft report outlining the proposed design principles for a ‘green’ taxonomy that would provide a clear classification system to identify economic activities and assets aligned with a sustainable, low-emissions future in Aotearoa New Zealand.

The report follows the Government tasking a specialised Independent Technical Advisory Group (ITAG) with preparing and publishing non-binding advice on the design of a taxonomy, and providing its recommendations to the Climate Change Minister by June 2024.

The ITAG is seeking feedback on its draft report before presenting its final recommendations to the Minister in June. The deadline for public feedback is 12pm, Sunday 5 May.

A copy of the report, its meeting minutes and recordings of two information webinars with the ITAG are available on the CSF website, along with the feedback survey: https://www.sustainablefinance.nz/taxonomyrecommendations

The purpose of a taxonomy is to provide objective definitions of sustainable activities for investment, lending and insurance. This will help direct capital to activities that support a low-carbon economy, and give investors, businesses and market participants greater confidence in the validity of ‘green’ financial products.

“The ITAG’s draft recommendations have been developed to align with international approaches and our key trading partners, while taking into account the important features of our own economy,” CSF chief executive Jo Kelly says.

“The key considerations the ITAG focused on included credibility, usability and alignment with our international commitments and environmental objectives across other jurisdictions. It also identified the sectors it considered should be prioritised under the taxonomy given their importance to our low-emissions transition and our economy.”

Those key sectors are:

Agriculture, forestry and fishery

Transport

Energy

Construction and real estate

Industrial manufacturing

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