The Government of Canada is advancing a Made-in-Canada sustainable investment taxonomy aimed at accelerating progress toward net-zero emissions by 2050. This taxonomy will provide a framework for identifying “green” and “transition” investments based on scientifically determined criteria. The goal is to guide private capital into activities that align with limiting global temperature rise to 1.5°C above pre-industrial levels, as outlined in the Paris Agreement.
The Canadian taxonomy sets a high standard to maintain credibility. It aims to mobilize investment in low- or non-emitting sectors, as well as identify decarbonization pathways for Canada’s emissions-intensive industries. The taxonomy’s “transition” category will support investments that help these sectors reduce emissions significantly, contributing to Canada’s leadership in transition finance globally.
