This report identifies key considerations to inform the methodology for integrating transition activities in an Australian taxonomy. The report’s findings were informed by and adapted from the most advanced transition methodologies currently under development internationally, as well as international best practice on transition financing and disclosures.

This report provides recommendations on the core design elements for an Australian taxonomy. Through a public consultation process that helped inform the report, ASFI found there is broad consensus on the core design elements of an Australian taxonomy, including in relation to credibility; usability; interoperability; and prioritisation and impact. Consultation also revealed strong support for the inclusion of a transition category in an Australian taxonomy.

This paper provides recommendations on the design of an Australian sustainable finance taxonomy, and the roadmap and timeline for its immediate development. The paper is informed by stakeholder consultation, the Australian economic and environmental context and insights gained through the development of the taxonomy project’s Scoping paper of international taxonomies.

This report compares taxonomy frameworks used in 13 jurisdictions internationally with similar economic compositions and needs to Australia, and identifies lessons to inform the development of an Australian taxonomy.