These 12 experts will classify Canada’s green and transition investments
Canada is one step closer to joining 70 other countries by defining its green and transition taxonomy, making it easier for investors to know whether their investments truly support reducing climate change.
“You can think of a taxonomy label the same way you think of an Energy Star on an appliance,” said Barb Zvan, President and CEO of University Pension Plan Ontario and one of the 12 experts who will come up with the taxonomy by the end of 2027.
“If you are shopping for a new fridge and energy efficiency is something you care about, the Energy Star label tells you right away which fridges meet that need. A green or transition label plays the same role for investors who are shopping for sustainable investment opportunities,” she added.
The committee will collaborate with researchers from the Canadian Climate Institute. The guidelines will provide clarity to investors; however, they will not be mandatory, and financial institutions will not have to align with the taxonomy.
Canada cannot adopt another country’s definition, because every country has a different economic mix of industries.
The definition for Canada’s transition taxonomy is as critical as the green taxonomy to prevent greenwashing and ensure investors that investments in decarbonizing large emitters, like steel and cement, actually reduce emissions.
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