A specialised Independent Technical Advisory Group (ITAG) tasked with preparing and publishing independent non-binding advice on the design of a "green" (sustainable finance) taxonomy rulebook is being established, Climate Change Minister Simon Watts says.

“Comprising experts and market participants, the ITAG's primary goal is to deliver comprehensive recommendations to the Minister by June 2024 tailored for New Zealand’s needs.

“A sustainable finance taxonomy is crucial in today's world as it provides a clear classification system to identify economic activities and assets aligned with a sustainable, low-emissions future.

“This initiative is an important step towards helping investors, businesses, and market participants enhance confidence and reduce uncertainty in “green” financial products. Mobilising private capital that enables implementation of emission reduction projects is a priority for this Government.

“By leveraging the expertise and insights of industry leaders, the ITAG will play a pivotal role in shaping policies and frameworks that promote environmental sustainability while driving economic growth,” says Mr Watts.

New Zealand is following in the footsteps of Australia, which recently introduced a similar industry-led process. This demonstrates a collective effort among nations to address climate change challenges and transition towards a more sustainable financial ecosystem.

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