A sustainable finance taxonomy is a classification system. It labels and establishes credible criteria for economic activities based on their contributions to meeting environmental goals.
The NZ Taxonomy provides a clear, science-based framework to define which economic activities are aligned to, or enable substantial progress towards, a low-emissions, resilient future for Aotearoa New Zealand.
CSF, in partnership with the New Zealand Government, is working to create a sustainable finance taxonomy for Aotearoa New Zealand (the NZ Taxonomy).
The NZ Taxonomy create a common language between investors and businesses and intends to flow capital to activities which support Aotearoa New Zealand’s transition to a low-emissions, resilient economy, while safeguarding other environmental and social objectives.
The NZ Taxonomy makes it easier to assess the sustainability credentials of an activity or investment, thereby lowering associated costs and greenwashing risk. For businesses, the NZ Taxonomy can be used to distinguish activities that could be relevant for a broader range of financing structures offered by lenders or investors.
Work is under way to develop classifications and criteria for activities that contribute to the goals of climate change mitigation, adaptation and resilience, in three sectors:
The NZ Taxonomy is now taking expressions of interest to join the sector-specific Technical Advisory Groups (TAGs) for the Energy sector and Construction and Buildings sectors.
The TAGs provide technical inputs to developing the criteria for each sector, and ensuring they are both credible and practical.
We seek a range of perspectives in the TAGs, including from those with experience from industry, civil society, iwi and Māori organisations, policy, and academia. Sectorial experts in these areas are invited to apply.
Energy sector EoI is open until 5pm NZT, Friday 10 October. All applicants will be notified by 24 October.
The second public consultation on the draft criteria for climate change adaptation and resilience, as well as the updated climate change mitigation criteria, is now open.
Consultation closes 5pm NZT, Friday 17 October.
This consultation includes updated criteria for climate change mitigation, based on the feedback received in the June public consultation. It also includes the new climate change adaptation and resilience criteria, available for public feedback for the first time.
The climate change adaptation and resilience criteria broaden the options for NZ Taxonomy-alignment and possible finance options for activities which help businesses adapt to the impacts of climate change and increase their resilience.
We welcome feedback from all stakeholders on these criteria.
The long-term prosperity and resilience of Aotearoa New Zealand depends on transitioning to a low-emissions economy, but domestic organisations will need finance to do so.
Taxonomies are developed or being developed in 53 jurisdictions globally. As an optional capital market, a domestically relevant taxonomy is intended to help NZ businesses access global capital for transition. It can also support efficient market access by ensuring NZ businesses are using frameworks recognisable to markets, customers and regulators globally.
The NZ Taxonomy also plays a crucial role in expanding the visibility and credibility of transition activities, where the path towards low-emissions is complex and gradual.
The purpose of the NZ Taxonomy is to enable market participants to mobilise and direct capital flows towards:
There’s been commentary lately making inaccurate claims about the NZ Taxonomy. Let’s be clear: the taxonomy is not about compliance or telling farmers how to run their businesses. It is a voluntary, market-led tool to help investors identify ‘green’ or ‘sustainable’ activities in New Zealand. It’s about growing access to global capital, not adding green tape. ‘Taxonomy’ simply means classification – nothing to do with tax.
The New Zealand Government has objectives of doubling the value of exports while staying in line with the goals of the Paris Agreement, growing and building resilience into the economy. The NZ Taxonomy is about growing New Zealand access to global capital and markets.
Listen to our Chief Executive, Jo Kelly, set the record straight on The Rural Roundup radio.
Questions and feedback are welcome – this tool is still in development – but let’s base the conversation on facts. To read our detailed response to the claims recently leveled by industry groups, read this PDF.
The NZ Taxonomy is being developed through a robust and credible process that was established in alignment with leading international efforts in designing local taxonomies.
This process includes the involvement of a diverse range of expertise, strong governance, regulatory oversight, transparency, opportunity for public input and safeguards against undue political or industry interference.
The process includes two types of working group:
The development work is overseen by the Ministry for the Environment, with quality assurance of the process being provided by the Council of Financial Regulators.
CSF provides coordination and secretariat functions for the development of the NZ Taxonomy.
CSF has engaged the Climate Bonds Initiative (CBI) as the technical partners for the NZ Taxonomy development. CBI have contributed to the development of more than twenty sustainable finance taxonomies globally, including in the EU, Singapore, Brazil and Australia.
Additionally, throughout the process there has been input from and engagement with a wide range of stakeholders, including government officials, research organisations, industry bodies, real economy participants, iwi and Māori organisations, and environmental NGOs.
The NZ Taxonomy coordinates with the development of taxonomies in other jurisdictions internationally, and particularly with Australia.
There are several ways to stay informed and give your feedback as the NZ Taxonomy develops. Register for updates, using the form at the bottom of the page, to get the latest news. Join us for public webinars at key points in the development process.
CSF is also undertaking appropriate engagement through targeted consultation with stakeholders affected by the Taxonomy across the financial sector, agriculture and forestry industries, environmental NGOs and with iwi and relevant Māori organisations. If your organisation would like a briefing, please email [email protected]
The Technical Expert Group (TEG) oversees the development of the NZ Taxonomy. It serves as an intermediary between the Technical Advisory Groups (TAGs), the lead agency, Ministry for the Environment (the Ministry), and the Government quality assurance function. The TEG offers strategic direction, input, and endorsement of all technical taxonomy methodologies and definitions, ensuring usability, interoperability and alignment with Ministerial direction on taxonomy design and that they are fit-for-purpose for NZ.
TEG co-Chairs
TEG members
Observer
The Agriculture/Forestry Technical Advisory Group (TAG) provides technical input into the methodologies and definitions of a sustainable finance taxonomy that is fit-for-purpose for NZ.
CSF has also undertaken extensive engagement with stakeholders affected by the taxonomy across the financial sector, agriculture and forestry industries, environmental NGOs, science and research bodies, and with iwi and relevant Māori organisations.
We thank everyone who has contributed valuable feedback and inputs throughout this process.
TAG members
Observer
Developing a Sustainable Finance Taxonomy for Aotearoa New Zealand
In 2023-2024, CSF convened an Independent Technical Advisory Group (ITAG) to develop key design recommendations for the NZ Taxonomy. The resulting recommendations report, covering ten key topics, was presented to the Minister of Climate Change and made public in July 2024.
An Aotearoa New Zealand Sustainable Finance Taxonomy (NZ Taxonomy) provides recognisable definitions that can be used by investors and capital providers who want to make investments into the global transition to a low emissions economy.
Over 50 jurisdictions are developing taxonomies. NZ’s approach is to closely align to the Australian Taxonomy, adapting international definitions to fit our business, legal and policy environment. Being an importer of capital, these definitions need to be recognisable, credible and relevant to investors, while being applicable and suitable in the NZ context.
A common language and approach is preferable to individual organisations creating their own definitions. The standardisation will reduce friction and accelerate the pace and scale of capital flow towards better outcomes.
While taxonomies don’t provide a complete solution, they are vital tools that financial institutions and Government can use to direct capital towards more sustainable outcomes.
Taxonomies offer broader benefits – they help prevent greenwashing, guide Government incentives, attract international green capital, and align with key trading partners’ regulations/standards.
The NZ Taxonomy prioritises interoperability and harmonisation with global standards. It will be closely aligned to the Australian approach, which also follows the principle of ensuring credibility and harmonisation.
CSF is a taxonomy development partner and will coordinate the process, technical delivery and stakeholder engagement for the NZ Taxonomy. CSF is not the decision-maker on the various aspects e.g. substantial contribution screening criteria, do no significant harm criteria, and minimum social safeguards.
The role of the Government is to provide legitimacy to the process and to provide a predictable source of funding to guarantee a stable environment for the development of the NZ Taxonomy.
Importantly, the Government does not drive the development of the NZ Taxonomy. Instead, it either accepts or declines to endorse the process, rather than evaluating the quality of criteria developed by the TEG and TAGs. CSF is the liaison between all groups and care is taken to ensure that industry and political influences do not hinder the independence of the body developing the technical screening criteria.
The ITAG, which provided key design recommendations to the Government, advised a priority focus on several key sectors.
When undertaking its sector prioritisation, the ITAG considered factors such as greenhouse gas emissions, relevance to New Zealand’s low-emissions transition, dependence on nature, significance to the Māori economy, contribution to exports, and share of bank lending.
You can find more information on page 17 of the ITAG recommendations report.
Criteria are being developed one sector at a time. Agriculture & forestry, energy, and building & construction are the first priorities, given their vital role in New Zealand’s economy, low-emissions future, and environmental resilience.
Taxonomies prioritise climate change mitigation for several reasons:
Measurability: It’s generally easier to determine and quantify substantial contributions that economic activities make to mitigation efforts.
Established frameworks: There are already well-established best practices, criteria, and thresholds in the area of climate change mitigation, providing a solid foundation for our work.
Adaptation and resilience are crucial for NZ, however there is currently a lack of international consensus on what constitutes a substantial contribution in these areas, largely because these factors are often highly localised. This makes it difficult to establish standardised criteria that are both globally relevant and locally applicable.
Our approach is to focus on mitigation as an immediate priority, with adaptation and resilience developed at the same time, to the full degree possible, while taxonomies develop internationally. This strategy allows us to move quickly while aligning with the Australian adaptation and resilience criteria for agriculture and land use, as global standards evolve.
The members of the independent technical advisory group that made design recommendations on the NZ Taxonomy (the ITAG) unanimously recommended that it reflect New Zealand’s economic advantages and context, by including indigenous rights, interests and knowledge into its design.
The development of the NZ Taxonomy has sought to incorporate iwi/Māori perspectives and knowledge by:
The criteria available for public consultation include iwi/Māori values where relevant, including:
The selection of TEG and TAG members is conducted through an open Expression of Interest (EoI) process. This approach ensures a comprehensive and fair selection, aiming to create diverse groups that effectively represent both the financial services sector and the broader financial ecosystem.
Key aspects of the TEG selection process include:
Assessing individual skills, experience, expertise, and networks, as well as potential contributions from the candidate’s organisations.
Ensuring a balanced mix of expertise across sustainable finance, climate and environmental science and policy, circular economy, human rights, and indigenous perspectives.
Evaluating candidates’ understanding of global and NZ sustainable finance landscapes.
Considering ability to commit required time, manage potential conflicts of interest, and collaborate effectively.
Prioritising diverse perspectives, including indigenous knowledge and expertise.
For the TAGs, we seek experts from policy, academia, finance, industry, civil society, and iwi/Māori organisations with sector-specific knowledge. These candidates should be able to provide technical insights for developing climate mitigation, adaptation and resilience criteria in their relevant sector.
CSF makes the final selections in consultation with the lead agency, Ministry for the Environment.
Drawing on international experience, financial sector representatives have an important role in ensuring the NZ Taxonomy’s usability, practicality, and impact at the design stage. This input is vital to create a fit-for-purpose NZ Taxonomy that will be widely adopted and achieve its intended impact.
Typically, recommendations are made by a technical group comprised of relevant experts to an oversight group, which also considers usability and application in the market and determines whether to accept the technical recommendations. From here, the Government has a role in endorsing (or not) the process taken and ultimately in endorsing the taxonomy.
CSF has recommended that integrity safeguards are put in place to protect the process from undue industry or political influence.
Yes, there are three ways to engage:
Public consultation: The second round on Agriculture and Forestry sector criteria will be open from 22 September to 17 October 2025. Click here for more information.
Join public webinars and/or stakeholder discussion sessions to stay in formed at key phases of the development.
Stay informed: Subscribe below for NZ Taxonomy-related updates.
Sustainable Finance is a broad approach integrating environmental, social, and governance (ESG) considerations into financial decisions.
Green Finance is for activities aimed at supporting environmentally beneficial projects.
Transition Finance helps high-emitting sectors or entities shift towards low-carbon or net-zero pathways.
See this article for more information, including scope, application and examples from New Zealand.
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Financing sustainable growth in Aotearoa New Zealand.
A classification system for sustainable economic activities.
Accelerating financing solutions for affordable, abundant clean energy.
Guidance for SMEs to start sustainability reporting.
Promoting greater options for New Zealand investors
