The Australian Sustainable Finance Institute has today announced the release the Australian sustainable finance taxonomy – an historic step towards aligning investment with the nation’s net zero ambitions.
The Australian taxonomy provides a clear, science-based classification system for green and transition finance, tailored to Australia’s unique economic and environmental context. It offers financial institutions and businesses a robust framework to assess the green claims of economic activities and confidently invest in projects that advance net zero.
The development of an Australian taxonomy for climate change mitigation was a joint initiative between the Australian Government and finance sector, led by the Australian Sustainable Finance Institute. The taxonomy is a key component of the Government’s Sustainable Finance Roadmap. It was informed by broad-based collaboration and extensive public consultation over twenty months, from July 2023 to February 2025.
The Australian taxonomy is available for voluntary use. It supports the credible allocation of capital towards Paris-aligned activities by:
Strengthening investor confidence in low-emissions investment claims
Reducing the risk of greenwashing
Improving the comparability of investment products and sustainability disclosures
