Canadian climate-focused investor initiative Enterprise Future Pathways (BFP) introduced the appointment by an impartial committee of the brand new Taxonomy and Transition Planning Council, assembled to supervise the event and approval of a brand new Canadian sustainable finance taxonomy, the upcoming categorization system to establish inexperienced and transition investments.
Along with directing the event of the Taxonomy, the brand new council may also oversee the creation of local weather transition planning steering for Canadian corporations.
The launch of the brand new council follows an announcement by the federal government of Canada late final 12 months of plans to launch a brand new sustainable funding taxonomy by the top of 2026, aimed toward offering a set of standards for the identification of investments which might be eligible for a “inexperienced” or “transition” funding label, enabling corporations to concern inexperienced or transition bonds, and buyers to guage the credibility of sustainable funding merchandise.
The federal government appointed the Canadian Local weather Institute (CCI) to steer the event of the Taxonomy, working along with climate-focused investor initiative Enterprise Future Pathways, with the CCI main analysis and technical work to tell improvement of the proposed guideline standards, and collaborating with the BFP assigned to convene a decision-making council – consisting of representatives from impartial consultants and teachers, the monetary sector, local weather scientists, Indigenous representatives, and civil society and its monetary and technical advisory our bodies – in addition to monetary and technical advisory our bodies.
Key members of the brand new 17-person Council embody former AIMCo Chief Funding Officer Marlene Puffer as Chair, and former OSFI Vice Superintendent, Coverage Innovation, Stakeholder Affairs, Technique, Threat & Governance Jamey Hubbs as Vice Chair.
Puffer mentioned:
“To remain aggressive and entice funding, Canada must ship clear indicators of our climate-readiness to capital markets. Canada wants credible, internationally-aligned instruments—together with a sustainable funding taxonomy and transition plan steering—to mobilize personal capital for our corporations, communities, and nationwide priorities.”
The brand new council will oversee and approve the event of inexperienced and transition funding standards for six precedence Canadian sectors, with the primary three to be finalized this 12 months, in line with the federal government’s timeline, and the subsequent three by the top of 2027.
Moreover, the council may also oversee and approve the creation of clear, pragmatic, sector-specific steering to assist corporations operationalize and talk local weather transition plans, aimed toward serving to companies to establish a very powerful climate-related dangers and alternatives, and integrating these into enterprise technique and monetary planning.
Kathy Bardswick, former Chair of Canada’s Sustainable Finance Motion Council and chief of the Appointment Committee that chosen the brand new council, mentioned:
“The calibre of leaders who’ve stepped ahead to advance the event of Canadian-made sustainable funding and transition planning steering speaks volumes in regards to the significance of those initiatives to Canada’s future progress and competitiveness.”
