Taxonomy Interoperability
ASFI is working with international market participants to develop practical approaches to interoperability, supporting implementation and use of the Australian Taxonomy across global markets.
The Australian Sustainable Finance Taxonomy was designed for interoperability.
More than 65 national and regional taxonomies are operational or under development, reflecting different economies, policy settings and transition pathways.
Local tailoring is important, but differences between taxonomies can make it harder for companies and investors operating across global markets to compare sustainable activities and assess alignment. Without greater interoperability, multiple taxonomies can increase transaction costs, reporting burdens and market fragmentation.
Interoperability initiatives seek to understand how different taxonomies relate to each other, including where their objectives, coverage and criteria align and where they differ.
Interoperability initiatives
ASFI is working with international market participants to establish practical approaches to interoperability that can be used by companies, investors and financial institutions.
Understanding interoperability with the EU Taxonomy
ASFI partnered with ISS STOXX to assess interoperability between the Australian and EU Taxonomies. The analysis found 85% of assessed Australian green and transition activities had a comparable EU activity. The findings show that existing EU Taxonomy data can help companies and investors assess alignment with the Australian Taxonomy, reducing duplication for companies and investors working across multiple taxonomies.
Creating a pathway for international certification
ASFI has worked with Climate Bonds Initiative to broaden pathways to Climate Bonds Certification. The Australian Taxonomy was selected as the first pilot of Climate Bonds’ Equivalence Methodology for Climate Mitigation.
The methodology provides a pathway for equivalent Australian Taxonomy criteria to support Climate Bonds Certification, reducing duplication and making the Australian Taxonomy easier to apply across markets.
Alongside our work with ISS STOXX and Climate Bonds Initiative, ASFI engages with counterparts in the European Union, Canada, New Zealand, China, Hong Kong SAR, Singapore and ASEAN to share technical approaches, understand market uses and explore opportunities for greater alignment.
