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Z flashing is installed behind the rigid foam and metal lathe that goes behind the stucco siding to protect the transition between the wall sheathing and the exterior foundation insulation.

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Pumpkin Ridge Passive House video #006: Insulation Details

Video

Video describing the EPS foam used to insulate the exterior of a passive house.

Stucco is installed over rigid insulation, which is installed over a drainage plane consisting of a drainage gap and building wrap layer over the sheathing

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Building in Extreme Cold, BSI-031

Reference

Article describing the control layers (air, thermal, and vapor barriers) needed to build homes successfully in very cold locations.

Moisture Control for Residential Buildings

Reference

Report providing extensive guidance on controlling moisture in building envelopes through proper selection and installation on air, water, thermal, and vapor barriers.