Australia now has a green taxonomy. 

The country has joined a group of 40 others that have published guidelines on spending money to attain net-zero objectives.

The ultimate objective of a green taxonomy is to align the finance sector with humanity’s goal of a sustainable world. 

To that end, Canada published a taxonomy roadmap report in 2022. The Trudeau government twice committed to developing a Canadian green taxonomy: in the 2023 Fall Economic Statement and the 2024 budget. 

Since then, the Carney government promised to “rapidly finalize Canada’s transition taxonomy for financial institutions” to mobilize capital rapidly toward transition.

Australia and Canada have similar economies that heavily rely on resource exploitation. The big question in both Australia’s new taxonomy and Canada’s, should they follow: Should fossil fuel projects be included as “transition investments?”

Among these are liquified natural gas projects, which are back on top of mind in B.C. and Quebec. 

Australia excluded the fossil fuel industry and related activities from its green taxonomy.

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