The Canadian federal government's Sustainable Financial Action Council published its Taxonomy Roadmap Report for Mobilizing Finance for Sustainable Growth by Defining Green and Transition Investments. The 77-page report seeks to develop a taxonomy that will produce standards to benchmark economic activities consistent with climate goals expressed by the federal government.
The taxonomy provided in this report has specified aims of mobilizing capital in alignment with transition pathways and climate objectives, developing a sustainable finance market and mitigating greenwashing, providing a multiple-use standardized tool, and contributing to the global taxonomic dialogue on these fronts.
Furthermore, the taxonomy aims to foster the issuance of green and transition [al] financial instruments consistent with the federal climate goals. Accordingly, the taxonomy sets out categories of general and specific requirements, eligible green projects for issuing green financial instruments, eligible transition projects for issuing transition financial instruments, ineligible projects, and do no significant harm requirements.
Participants in the financial markets should familiarize themselves with these in anticipation of further policy measures that could reflect these categories.
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