Sustainable finance knowledge hub
Learn more about sustainable finance and discover how you can invest in the net zero economy.
Investment opportunities
Private investment is central to NSW delivering on its sustainable finance agenda. It’s key to achieving our ESG objectives, such as decarbonising the electricity grid and reaching net zero.
The Future of Neoen Australia Made in Sydney and NSW
Investment NSW supported clean energy producer Neoen to build solar power plants in NSW in 2012 by connecting the company with potential partners and providing domestic clean energy market information. With $500 million in investments, Neoen has successfully built five solar farms in NSW and is looking to expand with new solar and wind projects in NSW.
Investment NSW helps local and international businesses invest in our state. It provides advice and support on:
- investment opportunities
- business case development
- identifying partners and locations
- government programs, approvals, incentives and funding.
Find out more about how you can take advantage of NSW’s clean economy.
Read the NSW Clean Economy Investment Prospectus.
Read the NSW Hydrogen Investment Prospectus.
The Department of Planning, Housing and Infrastructure assesses large, state-significant projects. It determines what infrastructure should be prioritised and balances protecting our environment with industry and community needs.
Find out about the major projects that are going through the planning and approvals process.
Find out about other ESG-aligned opportunities at the Department of Planning, Housing and Infrastructure, including:
The Energy Corporation of NSW (EnergyCo) is responsible for leading the delivery of Renewable Energy Zones (REZs) as part of our Electricity Infrastructure Roadmap. Its role includes coordinating investment in electricity transmission, generation, storage and other infrastructure.
Find out more about investing in our renewable energy zones and infrastructure.
The First Nations Clean Energy Network works with a variety of organisations to help First Nations people and businesses get involved in sustainable investment and funding.
Learn about some of the finance and funding opportunities available to First Nations businesses, households and communities.
The NSW Government publishes maps that can help you to decide where to locate a new project. This includes the NSW Renewable Energy Map. Visit the mapping resources page.
Other resources
Blended finance: Blended finance combines different types of capital (such as debt, equity and philanthropic funding).
Bond: A bond is a loan made by an investor to a borrower for a set period of time in return for regular interest payments. The time from when the bond is issued to when the borrower has agreed to pay the loan back is called its ‘term to maturity’.
Circular economy: A circular economy is an economic system aimed at eliminating waste and the continual use of resources.
Climate finance: Climate finance is financing that supports the transition to a climate-resilient economy by enabling mitigation actions (especially the reduction of greenhouse gas emissions) and adaptation initiatives promoting the climate resilience of infrastructure, as well as generally of social and economic assets.
Equator Principles: A risk management framework for determining, assessing and managing environmental and social risk in project finance. Learn more at the Equator Principles website.
ESG investing or responsible investing: Responsible investment involves considering environmental, social and governance (ESG) issues when making investment decisions and influencing companies or assets (known as active ownership or stewardship). It complements traditional financial analysis and portfolio construction techniques.
Green bonds: Green bonds finance new and existing projects that offer climate change and environmental benefits.
Green finance: Green finance addresses climate and other environmental objectives such as natural resource conservation, biodiversity conservation, and pollution prevention and control.
Impact investment: Impact investment is made with the intention to generate positive, measurable social and environmental impact alongside a financial return.
Payment-by-results contract: Payment-by-results (PBRs) are outcome-based contracts where a portion of funding is dependent on the delivery of outcomes. They can also be referred to as 'Payment-by-outcome' and 'Pay-for success' contracts.
Poseidon Principles: A framework for assessing and disclosing the climate alignment of ship finance portfolios. Learn more at the Poseidon Principles website.
Principles for Responsible Banking: 6 principles created by the United Nations to help banks take action to align their core strategy, decision making, lending and investment with the UN Sustainable Development Goals and other international agreements.
Principles for Responsible Investment: The Principles for Responsible Investment outlines actions for incorporating ESG issues into investment practice.
Principles for Sustainable Insurance: A global framework for the insurance industry to address environmental, social and governance (ESG) risks and opportunities. The principles are a global initiative to strengthen the insurance industry’s contribution as risk managers, insurers and investors to building resilient, inclusive and sustainable communities and economies.
Social bonds: Social bonds finance new and existing projects that offer social and environmental benefits.
Social Impact Bonds: Social Impact Bonds, also referred to as Social Benefit Bonds, are a financing mechanism that enable service providers to enter outcome-based contracts with government.
Stakeholder Capitalism Metrics: A proposed set of universal, material ESG metrics and recommended disclosures that could be reflected in the financial accounts of companies on a consistent basis across industry sectors and countries.
Sustainability bonds: Bonds of which the proceeds will be exclusively applied to finance or re-finance a combination of both green and social projects.
Sustainable Development Goals (SDGs): Sustainable Development Goals (SDGs) refer to 17 goals with 169 targets. They form the core of the 2030 Agenda for Sustainable Development adopted by the United Nations in 2015. It aims to end poverty, protect the planet and ensure prosperity for everyone.
Sustainable finance: The NSW Government defines sustainable finance as the integration of sustainability considerations (environmental, social and governance matters) into economic and financial decision-making to mitigate risks and realise opportunities for the lasting benefit of society.
Sustainability-Linked Bond Principles: The Sustainability-Linked Bond Principles provide guidelines that recommend structuring features, disclosure and reporting. They are intended for use by market participants and are designed to drive the provision of information needed to increase capital allocation to such financial products.
Sustainable Ocean Economy: A Sustainable Ocean Economy safeguards marine and coastal ecosystems. It also uses ocean resources in a sustainable way, ensures that they’re shared fairly and can last into the future.
Australian Sustainable Finance Roadmap
The Australian Sustainable Finance Roadmap was published by the Australian Sustainable Finance Initiative (ASFI). It sets out 37 recommendations to strengthen Australia’s financial system.
Australian Sustainable Finance Strategy
The Commonwealth Government has released the Australian Sustainable Finance Strategy for consultation. The Strategy will support Australia’s pathway to net zero, by providing an ambitious and comprehensive framework for reducing barriers to investment into sustainable activities.
Australian Sustainable Finance Taxonomy
In partnership with ASFI, the Commonwealth Government is supporting the initial development phase of an Australian Sustainable Finance Taxonomy. The Taxonomy will support international alignment and serve as a foundation for Australia’s sustainable finance landscape.
Guidance on greenwashing
The Australian Securities & Investments Commission (ASIC) has released guidance on how to avoid greenwashing when offering or promoting sustainability-related products.
National Agreement on Closing the Gap
The objective of the National Agreement on Closing the Gap is to enable Aboriginal and Torres Strait Islander people and governments to work together to overcome the inequality experienced by Aboriginal and Torres Strait Islander people and achieve life outcomes equal to all Australians.
NSW cost-benefit analysis guidelines
NSW Treasury applies cost-benefit analysis to weigh up risks and benefits versus costs to make sure it makes sustainable investment decisions. Cost-benefit analysis is a way that organisations work out whether to take a particular course of action.
NSW Environmental, Social and Governance Review
This review of the state’s investment funds looked at how TCorp considers environmental, social and governance principles when investing. It also examined how its processes and practices could be improved while promoting a better future and a resilient economy.
The International Sustainability Standards Board (ISSB) develops standards that will result in a comprehensive global baseline of sustainability disclosures focused on the needs of investors and the financial markets. In June 2023, the ISSB released the Sustainability Disclosure Standards.
The Commonwealth Government has introduced legislation to mandate climate-related financial disclosures for large companies. This will provide Australians and investors with greater information and certainty when it comes to their climate-related plans, financial risks, and opportunities.
In NSW, Treasury’s Annual Report Framework sets out that ‘sustainability’ is one of the mandatory headings in government entities’ annual reports. This includes the mandatory requirement to include climate-related financial disclosures within annual reports from the 2024-25 financial year for larger entities or those likely to have material climate-related risks. A reporting framework (TPG24-33) for first year climate-related financial disclosures have been released to support entities in preparing their disclosures. Sustainability disclosures are a way for organisations to report and act on sustainability risks.
Other disclosure frameworks are being developed by the:
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