Sustainable
Finance Progress
ASFI reviews sustainable finance progress annually, highlighting areas of progress and priority actions.
Australia’s sustainable finance landscape is strengthening despite global volatility, with capital continuing to accelerate into clean energy and climate-aligned industries.
In 2025, meaningful progress was made on core reforms, but the analysis points to several areas requiring urgent attention.
Key gaps
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an 11% gap to Australia’s 2035 emissions target
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underinvestment in adaptation and nature
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intensifying international competition to attract clean-industry investment.
Priority Areas:
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Clearer and more consistent climate and industry policy
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Expanded taxonomy coverage
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Scaled blended-finance solutions
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Stronger environmental protections and
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A coordinated approach to clean-export growth.
About the report
In 2025, ASFI made its first annual assessment of progress under the 2025–2027 Sustainable Finance Action Plan.
The 2025 Progress Tracker highlights areas of strong policy progress and near term additional reform as well as 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.
Sustainable Finance in Australia
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