ASFI Newsletter – December

Whilst the year is drawing to a close, developments in sustainable finance have kept pace over the past month.

December 5 saw Treasurer Jim Chalmers hold an Investor Roundtable on the Net Zero Transformation, which was attended by Kristy, along with CEOs and Chairs from many ASFI member organisations and the broader finance sector. At the roundtable, ASFI released two methodology papers outlining the design features of the Australian sustainable finance taxonomy. These papers, which have been endorsed by the Taxonomy Technical Expert Group, form the basis on which the Australian taxonomy’s technical screening and further qualifying criteria will be developed over the next twelve months.

This year’s UNFCCC Conference of the Parties ‘COP28’ wrapped up last week. The negotiated outcome demonstrates growing global momentum towards decarbonisation in line with the 1.5-degree goal and provides a strong signal for investors and financiers to continue to strengthen their net zero strategies. At the same time, the ambiguous decision language around ‘transition’ underscores the need for taxonomies and other frameworks that clearly define what activities are consistent with the Paris Agreement so that we can channel capital where it is most needed and avoid carbon lock in. You can read the statement from the ‘Umbrella Group’ of countries (the UNFCCC negotiating coalition, chaired by Australia) endorsing the COP28 outcome here. This was read out by Minister for Climate Change and Energy, Chris Bowen, in the final COP28 plenary.

Kristy Graham and Purdie Bowden from the ASFI team were on the ground in Dubai meeting with international partners and participating in events on transition finance and blended finance for climate in emerging markets.

ASFI’s panel session ‘Accelerating Transition Finance for Climate Action’ brought together senior officials from the US and Japan, with the Clean Energy Finance Corporation, Commonwealth Bank and the Climate Bonds Initiative on the critical topic of transition finance. The event featured the international launch of the Australian sustainable finance taxonomy’s methodological design features, and demonstrated the increasing global focus of financial institutions, governments and international fora, including the G20, on supporting the flow of capital to decarbonise heavy emitting industries. You can catch a full recording of the session on our website.

Panellists, L-R: Kristy Graham, ASFI; Izuro Kobayashi, Japan’s Ministry of Economy, Trade and Industry; Sean Kidney, Climate Bonds Initiative; Adam Wang-Levine, US Treasury; Monique Miller, Clean Energy Finance Corporation; Alex Matthews, CBA.

To unpack the finance-related outcomes of COP28 and discuss the key themes which emerged from side events and conversations, join us at our webinar ‘COP28 Debrief: Finance Sector Perspectives’ on Thursday from 11:00am-12:00pm – register here.

This is our final newsletter for 2023. Thank you to all those who we have worked with this year, it has been a pleasure. We look forward to continuing to work together to progress sustainable finance in the new year. We wish everyone a restful and relaxing break.

ASFI 2023 Work Program

Enabling Sustainable Finance

Sustainable Finance Taxonomy

As noted, ASFI has released two methodology papers outlining the design features of the Australian sustainable finance taxonomy. These features, which have been endorsed by the Taxonomy Technical Expert Group, form the basis on which the Australian taxonomy’s technical screening and further qualifying criteria will be developed over the next twelve months.

The first report defines “green” and “transition” and how sectors and activities will be assessed as eligible or not for inclusion in the taxonomy under these labels. The second report explains the process for determining the classification of other environmental objectives and social considerations in the taxonomy, and how they will be defined for the purpose of ensuring green and transition activities that support climate change mitigation do not undermine other sustainability goals.
On December 6, we hosted our second Taxonomy Information Forum, at which ASFI’s Taxonomy Project Lead, Nicole Yazbek-Martin, introduced the taxonomy’s methodological design features, key takeaways from the reports and the forward workplan for the Australian taxonomy’s development, including in relation to public consultation. You can access a recording of the webinar here.
At the Treasurer’s Investor Roundtable on the Net Zero Transformation, the Government committed an additional $550,000 to support further work on development of the taxonomy. This is in addition to funding that was announced by the Government earlier this year as part of its 2023-24 budget and will help expand the coverage of the taxonomy beyond the three sectors currently under development.

Natural Capital

On 4 December, the Government established the Nature Finance Council to support the Australian Government’s efforts to align private finance and investment with nature positive outcomes. The Council comprises Australian senior leaders that will bring expertise and insights across finance, conservation, science and Indigenous perspectives – including many of our members and partners and our own Kristy Graham. You can read more here.

Policy Engagement

On November 2, Treasury released the Government’s much-anticipated Sustainable Finance Strategy consultation paper. ASFI has now published our final submission to the consultation, available here. A focus of ASFI’s submission was exploring how the Australian sustainable finance taxonomy may be embedded in the Australian regulatory framework. ASFI and the Taxonomy Technical Expert Group will undertake and publish further analysis on taxonomy use cases next year. We also indicated our support for the Government’s plan to deepen and strengthen international engagement on sustainable finance.

Finance Sector Leadership

We welcome your response to our 5-10 minute sustainability culture pulse survey. The primary aim of the survey is to understand the cultural attributes that are helping or hindering financial services organisations to transform their business and contribute to a more sustainable future.
To support ASFI’s work program on capability, in early 2024 we are welcoming a new Program Manager to the ASFI team who will drive this work and our other system wide initiatives focused on accelerating capability for the sustainable finance sector. We look forward to introducing you to our new team member in early January 2024.
We continue to progress our work on sustainable finance capability and are working with our Capability Reference Group to develop a draft Australian Sustainable Finance Capability Framework. We will consult more widely as a part of this process in the first half of 2024.

First Nations and Finance

In November, ASFI’s First Nations Reference Group explored what First Nations related disclosures might look like. They unpacked the questions: What are the First Nations related impacts, risks, and opportunities of particular business activities? And, for organisations with commitments to and investments in First Nations outcomes, what are the benefits of disclosing risks and opportunities on First Nations activity?
ASFI looks forward to continuing to partner with our First Nations Reference Group to further our work program on First Nations and Finance in the new year and beyond. If you have any feedback on this work, or are an organisation interested in partnering with us in 2024, please get in touch.

Sustainable Finance Solutions

The Clean Energy Finance Corporation (CEFC) has opened a Request for Proposal (RFP) for co-financiers interested in working alongside the CEFC to deliver discounted consumer finance to support energy improvements to existing residential dwellings as part of its Home Energy Upgrades Fund (HEUF). The RFP closes 5:00pm AEDT on 1 March 2024. ASFI hosted a webinar last month providing an overview of the HEUF and showcasing international examples of home energy finance – catch up here in case you missed out.

Events and Opportunities

Events

Read below to find upcoming ASFI events which we welcome your participation in. Don’t forget to visit our sustainable finance events calendar to find upcoming industry events, and please reach out to advertise any events your organisation is hosting in 2024.

COP28 Debrief: Finance Sector Perspectives

Thursday 21 December, 11:00am-12:00pm AEDT, Online

ASFI invites you to our webinar 'COP28 Debrief: Finance Sector Perspectives' on Thursday 21 December from 11:00am – 12:00pm AEDT to unpack the outcomes of this year's UNFCCC Conference of the Parties 'COP28'.

We are delighted to have Australia's Head of Climate Negotiations and Engagement, Dr Sally Box, join us again to give the official take on finance-related outcomes at COP28, along with special guests including Luke Brown, Head of Policy and Engagement at Climateworks Centre, Helga Birgden, Global Chair, Sustainable Investment at Mercer, and Georgina Dudley, CEO at JANA Investment Advisers. Register here.

Opportunities

There are a range of exciting positions currently advertised on our Sustainable Finance Jobs Board. You can also subscribe to our Job Alerts for regular updates.

Current opportunities include:

If you would like to advertise any current jobs in sustainable finance on our website, please complete this form.