A low emissions economy is core to Aotearoa New Zealand’s economic value proposition, and sustainable finance plays a crucial role in enabling the transition.
The Centre for Sustainable Finance: Toitū Tahua (CSF) believes that successful government interventions to increase investment in sustainable or decarbonisation activities should involve a combination of regulatory, financial, and market-driven approaches. These interventions work best when they are part of a comprehensive strategy that aligns government policies with the broader goals of sustainable development and climate action.
Key points from the submission:
- The Government needs to establish clear, long-term policy commitments to decarbonisation and sustainability, ideally in collaboration with a broad cross-section of political parties across Parliament. Consistent and stable regulations provide investors with confidence that government policies will not change abruptly, reducing perceived risks.
- Initiatives should be designed to scale quickly to meet the size of the challenge, and to crowd in private capital.
- Ensure broader benefits are considered including reduction of future obligations under NDCs, resilience of energy system, reduction of fuel imports, health benefits of reduced pollution.
- Providing guarantees or insurance to cover specific risks associated with the development of a sustainable investment market can encourage private sector participation.
- Developing and promoting standards and a taxonomy for what qualifies as a green or sustainable investment helps investors identify credible opportunities and avoid greenwashing.
- Aligning domestic approaches (e.g. SF Taxonomy) with global standards makes it easier for global
investors to invest domestically.
