Australian Sustainable Finance Progress Tracker 2025
ASFI’s annual review of sustainable finance highlights continued progress and clear areas requiring action.
Australia’s sustainable finance landscape is strengthening despite global volatility, with capital continuing to accelerate into clean energy and climate-aligned industries.
ASFI’s 2025 Progress Tracker shows meaningful progress on core reforms, including the development of the Australian taxonomy and the rollout of mandatory climate disclosures.
However, the analysis points to several areas requiring urgent attention, including:
an 11% gap to Australia’s 2035 emissions target
underinvestment in adaptation and nature
intensifying international competition to attract clean-industry investment.
ASFI’s extensive analysis further highlights the continuing need for financial institutions to deepen the integration of sustainability across governance, culture and performance frameworks, and to build the capabilities needed to embed climate and nature into lending, investment and risk.
This is ASFI’s first annual assessment of progress under the 2025–2027 Sustainable Finance Action Plan, a focused agenda released in May 2025 to accelerate the transition to a sustainable, resilient and inclusive economy.
The Action Plan builds on the foundations of the 2020 Sustainable Finance Roadmap and sets out 26 priority actions across eight domains to guide finance sector leadership and support whole-of-economy progress.
Key Priorities
The 2025 Australian Sustainable Finance Progress Tracker report also outlines a clear set of priorities:
clearer and more consistent climate and industry policy
expanded taxonomy coverage
scaled blended-finance solutions
stronger environmental protections and
a coordinated approach to clean-export growth.
