Climate change and sustainable finance has become prominent in trans-Tasman discussions. We share recent developments.

The latest Situation and Outlook for Primary Industries report by the MPI features sustainable finance in the food and fibre sector. It showcases three case studies of sustainability-linked lending in agriculture and provides an overview of the Sustainable Agricultural Finance Initiative.

The Centre for Sustainable Finance: Toitū Tahua (CSF) is pleased to welcome two new Board members to guide the journey to sustainable finance in Aotearoa New Zealand: Matt Whineray and Chris White.

Bridget Coates, CSF Chair, moderated a political panel at the Mindful Money event in Tāmaki Makaurau, focusing on the need for political leadership, credible climate plans, and partnerships for sustainable funding.

In partnership with the Ministry for the Environment (MfE), the Centre hosted Māori leaders and finance experts at NZ Super Fund. Together, we discussed the development of a sustainable finance taxonomy for Aotearoa New Zealand, and meaningful iwi and Māori involvement.

In April, we supported the Investing in Climate Solutions event which brought together many organisations from the philanthropic community to explore the actions, opportunities, and key enablers for ‘crowding-in’ capital to New Zealand-based climate solutions. REad the event summary.

Much of the ‘2023 Draft advice to inform the strategic direction of the Government’s second emissions reduction plan’ aligns with the Centre’s Roadmap and 2023 recommendations to the Government.

Read our submission.

We recently held taxonomy workshops with stakeholders, convened in partnership with the Ministry for the Environment, with support from EY. We also bring you insights from the Australian taxonomy experience in session 2 of our webinar series.

Have your say on the Data & Technology roadmap to support the Aotearoa New Zealand Emissions Reduction Plan

The message from RBNZ is clear: climate change poses a direct challenge to financial stability.

The Centre commends this message, along with the Reserve Bank’s ongoing involvement in the Network for Greening the Financial System, and the three pillars of its 2018 climate strategy.

1. The Centre is pleased to see the Minister of Finance, Hon. Grant Robertson and Minister of Climate Change, Hon. James Shaw highlight the importance of close cooperation on sustainable finance, at the Inaugural Climate Finance Summit between Aotearoa New Zealand and Australia today. This is critically important given the integrated nature of our financial systems and the need for interoperability and alignment to enable capital flow to support transition to a low-emissions, climate resilient economy in both countries.

In May 2023, in partnership with NZ Super Fund, the Center convened a Roundtable discussion with the Minister of Finance and key public, private sector and iwi/Māori leaders on building long term resiience into recovery from Cyclone Gabrielle.

Commercial real estate is one of the many sectors where sustainability considerations now influence lending, acquisitions, governance and social responsibility. Providers of capital want demonstrable and credible long-term plans that position a business to be resilient, cost-effective and competitive in a low emissions economy.

Investing in Climate Solutions looked at the role of philanthropic funders (trusts and foundations); iwi and Māori asset owners and investment advisors in funding and financing the green / net zero transition in Aotearoa New Zealand. Several NZ climate solutions are profiled and the climate investment landscape outlined.

Chair Bridget Coates writes in this guest editorial, many countries have developed sophisticated skills to catalyse flows of funds from the private sector. This is essential given that the investable resources controlled by institutional investors are many billions greater than those funds available to the public sector in every country.

The Centre’s recent submission on the Risk Weights Omnibus Consultation Paper is a call for RBNZ to demonstrate leadership and provide further clarity on the influence of climate and sustainability factors on the risk profile of lending made by banks to support Aotearoa New Zealand’s transition to a low emissions economy.

With 2030 not that far away, if nations and companies are to accelerate towards their net zero targets, voluntary carbon markets have an essential part to play in creating “additionality” where non-voluntary markets exist such as in New Zealand with the Emissions Trading Scheme, writes HSBC New Zealand Country Head of Wholesale Banking Jarron Boulter.

BNZ Head of Sustainable Finance Adam Coxhead explains why taking action on climate transition should be a top priority for all in 2023.