No single institution working alone can achieve meaningful progress on a global challenge such as climate change. While we have a role to play, we recognise it is primarily the Government’s role to lead emission reduction and adaptation as part of a collective response including Māori, the private sector, communities, local government and individuals. The response needs to be aligned and at a scale and pace appropriate to the risks.
We want to play an active role in helping to support policy development and close information gaps, through domestic and international collaboration.
Support Aotearoa New Zealand agencies
Support other agencies in Aotearoa New Zealand in achieving their climate change objectives by engaging in cross-agency work streams and contributing knowledge and resources, as appropriate.
Facilitate and encourage engagement across the financial sector
Facilitate and encourage engagement across the financial sector to ensure information flows freely and widely.
Work with other central banks and policymakers
Work with other central banks and policymakers, both globally and within the Pacific region, to ensure the financial sector contributes effectively to efforts to manage and mitigate climate-related risks.
Develop the green bond market
Engage with other regional central banks to explore opportunities to develop the green bond market in the Asia-Pacific region (for example, through the Asian Bond Fund programme).
What we are doing
- The Council of Financial Regulators
- Working with other key domestic stakeholders
- Working with other central banks, policymakers, and key international stakeholders
The Council of Financial Regulators
The Council of Financial Regulators (CoFR) – Kaunihera Kaiwhakarite Ahumoni contributes to maximising New Zealand’s sustainable, economic wellbeing through effective and responsive regulation of the financial system in New Zealand. It consists of 5 agencies:
- Reserve Bank of New Zealand
- Financial Markets Authority (FMA)
- Commerce Commission
- Ministry of Business, Innovation and Employment
- The Treasury.
CoFR meets quarterly to discuss regulatory issues, risks, and priorities for financial markets and sets up sub-committees and working groups as required to address particular issues.
One of CoFR’s 5 priority themes is climate-related risks, with the External Reporting Board (XRB) and Ministry for the Environment (MfE) also engaging with CoFR to ensure that the financial sector mitigates and prepares for climate change.
We resumed chairing the CoFR Climate Working Group in late 2024, and continue to collaborate with CoFR agencies to deliver many of the parts of our climate strategy relating to acting as a prudential regulator and supervisor under prudential legislation.
Examples of these collaborations include joining up with the FMA on engagements with regulated entities and consulting with the FMA and XRB on both our guidance for managing climate-related risks and our stress testing approach.
Working with other key domestic stakeholders
We are also collaborating with New Zealand's public and private sectors on climate-related matters. We are engaging with:
- Toitū Tahua – The Centre for Sustainable Finance, where Reserve Bank Assistant Governor Simone Robbers sits on the board.
- Scientists and researchers across the country to help improve data and our understanding.
- The New Zealand Bankers’ Association and the Insurance Council of New Zealand regarding scenario analysis development.
Working with other central banks, policymakers, and key international stakeholders
One way we have implemented the collaborative components of our climate strategy is through our work as part of the Central Banks and Supervisors Network for Greening the Financial System (NGFS). The NGFS is made up of more than 144 central banks and supervisors who are collaborating on climate change.
In addition to learning lessons from the NGFS, we are also active participants in its ongoing climate work programme. This includes our role as co-chair of the workstream ‘Net Zero for Central Banks’ along with Banca D’Italia, and our co-leading of the subgroup on Central Bank Disclosure with the Bank of England.
From 2024 to 2026 the Workstream Net Zero for Central Banks features 4 subgroups.
- Sustainable and responsible investment
- Central banks’ own climate-related disclosures
- Greening central banks’ corporate operations
- Transition planning
We also attend a variety of meetings and events with other central banks through various forums.
Some are at the global level, for example, the Basel Committee for Banking Supervision Outreach events. Others are at the regional level, for example, the Executives Meeting of Asia-Pacific Central Banks or the Bank of International Settlements Asia- Pacific Climate Network.
We also engage at the bilateral level, for example with the Bank of England on central banks’ climate-related disclosures or the Australian Prudential Regulation Authority on matters concerning regulation and supervision.
