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Author	Dr Wenting Cheng
Organisation/Institution	The University of Queensland, TC Beirne School of Law
Country	AUSTRALIA
Panel	International Investment Law
Title	Conceptualising Interoperability of Sustainable Finance Taxonomies: A Three-Dimensional Framework for International Regulatory Alignment
Abstract	Sustainable finance taxonomies are classification systems that provide clear definitions for what constitutes sustainable or "green" economic activity, ensuring capital is directed towards genuine climate and sustainability objectives. Australia introduced its sustainable finance taxonomy in June 2025. Globally, over 50 countries have established such taxonomies. To create a common language for sustainable finance, interoperability has been central to the design of these taxonomies in Australia and many Asian jurisdictions. In practice, jurisdictions have begun developing common ground taxonomies. The EU and China launched the IPSF Taxonomy Working Group, and their Common Ground Taxonomy report was published at COP26 in November 2021. On the eve of COP 29, Singapore joined the multi-jurisdictional common ground taxonomy (MCGT). Since then, increasing numbers of jurisdictions, including South Africa, Brazil, and ASEAN, have considered joining MJCT. A key question is to clarify what an internationally interoperable sustainable finance taxonomy entails. This article aims to explain the concept of interoperability as it applies to sustainable finance taxonomies by creating a three-dimensional framework to deconstruct “interoperability”. We argue that "interoperability" is an inherently ambiguous concept requiring sector-specific analysis across three independent axes: (1) Prescriptiveness (from voluntary standards to mandatory requirements), (2) Granularity (from high-level objectives to detailed data templates), and (3) Integration depth (from parallel systems to mutual recognition and full harmonisation). This framework offers policymakers and practitioners systematic tools for measuring, assessing, and improving cross-border alignment of sustainable finance taxonomies. Through empirical analysis of major international initiatives, including the EU-China-Singapore Common Ground Taxonomy and the South African Green Finance Taxonomy, we demonstrate its usefulness for identifying specific intervention points to enhance interoperability. Our findings suggest that full interoperability may not be achievable or even desirable across all dimensions, but targeted improvements along particular axes can significantly enhance cross-border green capital flows while respecting national sovereignty and developmental priorities.
Biography	Senior Lecturer at the School of Law, University of Queensland. Dr Wenting Cheng is a legal and regulatory scholar working in intellectual property law, sustainability governance and their intersection. She has applied interdisciplinary skills, comparative perspectives and regulatory theories to her research in these diverse areas, including innovation policy, energy regulation (e.g., hydrogen and off-shore wind power) and sustainable finance, at local, national and international levels. Wenting obtained her PhD in Regulation and Governance in 2018 from the School of Regulation and Global Governance (RegNet), College of Asia Pacific, the Australian National University. From 2020 to 2023, she worked as a Grand Challenge Fellow at ANU Grand Challenge Zero Carbon Energy for the Asia Pacific. Before entering academia, Wenting worked at the State Intellectual Property Office of China for 5 years. She has applied interdisciplinary skills, comparative perspectives and regulatory theories to my research in these diverse areas, including intellectual property law, innovation policy, energy regulation and sustainable finance, at local, national and international levels. Wenting has a strong record of high-quality and impactful publications. Her Google Scholar h-index of 9 with 442 citations demonstrates the academic impact of her outputs. Wenting is an editor of the University of Queensland Law Journal (UQLJ) and Board Member of the Early Career Network of the European Consortium for Political Research (ECPR) Standing Group on Regulatory Governance (RegGov).