Canada has appointed the Canadian Climate Institute to lead the development of a national sustainable finance taxonomy, marking a significant step toward clearly defining what qualifies as green and transition investments. The voluntary, science-based framework is intended to guide investors, lenders, and companies, while enhancing transparency and reducing the risk of greenwashing. The initiative aligns Canada with international sustainable finance standards and supports capital flows toward net-zero goals.
The Climate Institute will work alongside the investor-led group Business Future Pathways to establish an independent Taxonomy Council, bringing together expertise from finance, climate science, academia, and Indigenous communities. Initial sector criteria are expected by the end of 2026, with additional sectors to follow in 2027. The framework is designed to mobilise private capital and accelerate Canada’s transition to a low-carbon economy.
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