Canada’s Sustainable Investment Guidelines

Press release by Government of Canada, Department of Finance | Industry Insights

by Alexandra Faciu

Montréal, Canada

The Government of Canada has reaffirmed its commitment to mobilizing both public and private capital in support of the transition to a net‑zero economy. Budget 2025 reconfirmed the government’s support for the arm’s‑length development of made‑in‑Canada sustainable investment guidelines, known as a taxonomy, and pledged to select an external organization to lead this work by the end of the year. That milestone has now been reached with the announcement by the Honourable François‑Philippe Champagne, Minister of Finance and National Revenue, that the Canadian Climate Institute will spearhead the initiative in collaboration with Business Future Pathways. This partnership will bring together representatives of major financial institutions and technical experts to ensure the guidelines are credible, science‑based, and aligned with global best practices.

The Canadian sustainable investment guidelines will serve as a voluntary market tool designed to identify “green” and “transition” investments. They will be built on strong and independent governance and structured to be compatible with other major international taxonomies and frameworks. By providing clarity and credibility, the taxonomy will become an essential resource for investors, lenders, and stakeholders seeking to align capital flows with Canada’s climate objectives. The government views this as a critical step in accelerating the growth of net‑zero aligned activities, particularly in sectors with higher emissions, where new technologies and processes can deliver significant reductions.

Canada is well positioned to seize this opportunity. With abundant resources, technical expertise, and a growing demand for low‑carbon goods and services worldwide, the country can leverage sustainable finance to strengthen competitiveness and attract private capital into priority economic sectors. The Canadian Climate Institute, working with Business Future Pathways, will establish a robust governance structure to oversee the development of taxonomy criteria and ensure broad stakeholder engagement. Immediate next steps include the creation of an independent Taxonomy Council tasked with reviewing and approving the guidelines. This council will be supported by advisory groups composed of independent experts, academics, financial sector leaders, civil society representatives, climate scientists, and Indigenous voices. Specialized working groups will also be formed to provide sector‑specific expertise and inform recommendations.

The timeline for delivery is ambitious but achievable. By the end of 2026, the council is expected to finalize investment guidelines for three priority sectors, laying the foundation for the made‑in‑Canada taxonomy. By fall 2027, guidelines for three additional sectors will be completed. Selection of these initial sectors will be based on where taxonomy guidance can deliver the greatest emissions reductions and enhance Canada’s low‑carbon competitiveness. Collaboration with government, industry, and stakeholders will be central to ensuring the guidelines are practical, credible, and effective in mobilizing capital.

Minister Champagne emphasized that clear, common standards are essential for financial markets and that the selection of the Canadian Climate Institute accelerates Canada’s ability to provide that clarity. Parliamentary Secretary Ryan Turnbull highlighted the importance of attracting private capital in the global race to a low‑carbon economy and underscored the role of Indigenous and civil society leaders in shaping definitions of “green” and “transition” finance. Jonathan Arnold of the Canadian Climate Institute stressed that the guidelines will not only define clean technologies but also provide pathways for emissions‑intensive sectors to transform and remain competitive. Barb Zvan, Chair of the Financial Advisory Committee of Business Future Pathways, noted that globally aligned, made‑in‑Canada guidelines will unlock economic potential and direct investment toward opportunities that will shape Canada’s future.

Together, these efforts mark a significant step in positioning Canada as a leader in sustainable finance. By establishing clear, credible, and science‑based definitions of sustainable investment, the government aims to mobilize capital at scale, strengthen competitiveness, and ensure that Canada’s economy is aligned with its 2050 net‑zero target.

To access the press release click 🔗 this link

Disclaimer: SAM Curated, the curators and any other guests invited to share their opinions assume no responsibility or liability for any errors or omissions in the content of this site and/or email generated by this site. Please note that the information on this site is provided on an “as is” basis, with no guarantees of completeness, accuracy, usefulness or timeliness.