The Australian Sustainable Finance Institute (ASFI) has appointed Guy Debelle, former deputy governor of the Reserve Bank of Australia (RBA), to lead its newly formed expert group as the sustainable finance taxonomy progresses.
In partnership with ASFI, the government first announced the joint sustainable initiative earlier in March to help to attract more green investment to Australia and provide a common standard for sustainable finance.
This also includes $4.3 million in funding towards ASIC to crack down on greenwashing.
Debelle will co-chair the Taxonomy Technical Expert Group (TTEG) alongside Emma Herd, partner at EY and former chief executive of Investor Group on Climate Change, as the project commences into the development phase.
The independent TTEG is made up of 25 newly appointed senior leaders, endorsed by the Australian Council of Financial Regulators’ Climate Working Group.
It is seeking to provide strategic direction, input and endorsement of an Australian sustainable finance taxonomy for consideration by the government. This will provide a common standard for green and transition finance, helping accelerate the allocation of capital towards sustainable activities to achieve Australia’s net-zero ambitions.
Debelle worked at the RBA for 25 years and had been expected to succeed governor Philip Lowe but departed in March 2022 to join resources firm, Fortescue. He then left Fortescue in November 2022 after having health problems caused by a cycling accident.
As well as his work at the RBA, Debelle is a former chair of the Australian Council of Financial Regulators’ Climate Working Group.
Debelle said: “It is imperative that we develop a sustainable finance taxonomy that is fit for purpose in Australia at the pace and scale commensurate with the challenges ahead of us. The establishment of the TTEG and commencement of the taxonomy’s development marks an important first step.”
“The Australian taxonomy will play a key role in guiding the transition of our economy, financial portfolios, companies and economic activities by providing clear and consistent definitions of what is classified as a sustainable activity,” Herd added.
Over the next 12 to 18 months, the 25 leaders will work towards the final approval of climate mitigation taxonomy screening criteria for priority sectors.
Moreover, ASFI will work alongside an international consortium of taxonomy and sustainability specialists led by the Climate Bonds Initiative.
Kristy Graham, chief executive of ASFI, welcomed the new team as the taxonomy progresses to the next stage.
“The TTEG will build on ASFI’s initial work to accelerate the development of an Australian sustainable finance taxonomy,” she said.
“The strong pool of candidates applying for the TTEG, and the calibre of the group appointed, highlights the level of interest in this work from across the finance sector. ASFI looks forward to working closely with the TTEG, and with other stakeholders in this next phase of the work.”
