During this session, the Centre for Sustainable Finance: Toitū Tahua (CSF) and the Climate Bonds Initiative outlined the NZ Taxonomy’s purpose, benefits for NZ, key components, objectives, principles, governance structure, and forward work plan, as well as how stakeholders can get involved in the development process.
Taxonomies are a standardised framework for classifying economic activities according to their environmental performance. This classification system allows investors to identify and invest in green activities while also avoiding investing in those activities that cause significant harm to the environment.
The intended purpose of the Sustainable Finance Taxonomy is to enable market participants to mobilise and direct capital flows towards:
- Building a low-emissions, Paris-aligned future;
- Restoring nature; and
- Upholding the rights and interests of indigenous people of the land.
We are starting Sustainable Finance Taxonomy development for the agriculture and forestry sectors, given their importance to the NZ economy and our nature-positive transition.
