A research team from The University of Western Australia, The University of Queensland and The Australian National University has secured a $580,000 grant from the National Foundation for Australia-China Relations to strengthen green finance cooperation between the two nations.
Lead researcher Dr Rui Zhong from the UWA Business School said the project, Towards Interoperability of Australia-China Sustainable Finance Taxonomies, aimed to align sustainable finance frameworks to support both countries' decarbonisation efforts.
"The research will address the challenges posed by different sustainable finance taxonomies, the standardised classification systems that categorise economic activities, financial products and investments according to specific criteria, used in Australia and China," Dr Zhong said.
"Establishing consistent global standards and high-quality interoperable framework of sustainable financial taxonomy is crucial for unlocking cross-border investments in green projects and ensuring regulatory coordination."
The multi-institutional and multidisciplinary team includes Dr Rui Zhong and Professor David Gilchrist from UWA, Dr Wenting Cheng from UQ and Honorary Professor Howard Bamsey from ANU, in close collaboration with the Australian Sustainable Finance Institute, International Institute of Green Finance and Institute of Finance and Sustainability in China.
Through research, roundtables and public-facing workshops, the team will collaborate with industry leaders, researchers and other climate finance experts in both Australia and China to develop practical strategies for aligning sustainable finance taxonomies.
"UWA is proud to lead this significant project which will aim to enhance Australia's competitiveness in sustainable mining, manufacturing and energy sectors while encouraging Chinese investment in Australian green projects," Dr Zhong said.
"Sustainable finance is a global challenge, and this project is a step towards stronger, more resilient economic ties between Australia and China."
