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OTTAWA — Jonathan Arnold, Research Lead in Clean Growth at the 91ɫ��Ƭ, made the following statement in response to the release of the : ��

“The federal government’s commitment today to a credible, science-based climate investment taxonomy sets the stage for a major acceleration of Canada’s clean energy transition. By the federal government’s own estimate, more than $115 billion per year in new clean energy and transition-aligned investments is needed to build Canada’s net zero economy. A Canadian climate investment taxonomy can help unlock the funds that will build those projects.  

“A climate investment taxonomy will establish a standardized language for how investors and capital markets categorize financial investments and assets that are fit for the transition to net zero. Clearly defining those opportunities will help cut emissions from Canada’s most energy-intensive industries, which will increase their global competitiveness. 

“Today’s announcement builds on the blueprint developed by the , which represents the 25 largest financial institutions in the country, and . The next step, as laid out by Minister Chrystia Freeland today, will see the creation of a new climate investment taxonomy that includes definitions for both “green” and “transition-aligned” investments. This taxonomy will create clarity for capital markets seeking sustainable investment opportunities.

“The government’s proposed framework  aligns with global best practices for “green” taxonomies, while laying the groundwork for a “transition” taxonomy—the “missing middle” in climate finance. Critically, today’s announcement stresses the need to exclude new natural gas projects from the taxonomy framework. It also emphasizes the importance of having a credible, independent governance structure for how the sector-specific criteria and pathways are determined. 

“In addition, the government announced that federally regulated corporations in Canada will be required to disclose how climate change and the global energy transition will impact their business and future profitability. This change is an important step to prepare Canada’s economy for the rising threat of a rapidly changing climate and the profound transformation already underway in international capital markets.  

“Canada is well positioned to take a global leadership role in these areas. Done well, Canada’s climate investment taxonomy and updated risk disclosure requirements will help attract global capital to compete with our neighbours to the south.”&�Բ�����;&�Բ�����;

RESOURCES

• Blog: Next steps for Canada’s climate investment taxonomy
• Blog: Defining fossil fuel projects by climate impact is critical
• Blog: More than Mandatory: Why Canada needs to go beyond global disclosure rules to secure its long-term economic success

CONTACT 

Catharine Tunnacliffe
Communications Director
91ɫ��Ƭ
(226) 212-9883
ctunnacliffe@climateinstitute.ca