2 November 2023

New steps on the Albanese Government’s sustainable finance strategy

The Albanese Government is today releasing a consultation paper on its Sustainable Finance Strategy, which will help Australian companies, investors and the Australian community make the most of the energy and net zero transformation, and help Australia realise its ambition to become a renewable energy superpower.

The Strategy is all about mobilising the significant private capital required to achieve net zero, modernising our financial markets and maximising the economic opportunities associated with our energy, climate and sustainability goals.

Australia’s financial system plays an integral role in aligning investment and economic growth with climate, environmental and social goals, including financing the transition to net zero.

We want to ensure that markets have access to high quality, credible and comparable information when it comes to climate and sustainability so that investors and companies have the confidence, clarity and certainty they need, and they are better able to manage climate‑related risks.

The consultation paper outlines proposals under three key priority areas: greater transparency on climate and sustainability, strengthening financial system capabilities and advancing Australia’s leadership and engagement on sustainability.

It proposes a wide range of tools and policies and builds on substantial work already underway, including the introduction of standardised, internationally‑aligned mandatory climate disclosure requirements and our sovereign green bond program.

The paper seeks feedback on a range of specific proposals, including:

  • Options for developing a labelling regime for sustainable investment products, including for managed investment products and superannuation options.
  • Next steps in the development of a sustainable finance taxonomy, including permanent governance arrangements to oversee and maintain the taxonomy.
  • Options to enhance the disclosure of corporate transition plans.
  • Steps to identify and address data‑related challenges faced by financial system companies and investors.
  • Plans to step up Australia’s international engagement on sustainable finance.

The net zero transformation is a defining opportunity for Australia and the Albanese Government is wasting no time taking action.

The consultation paper can be found on the Treasury website and submissions will close 1 December.