The Department of Finance Canada announced that the Canadian Climate Institute has been selected to lead the arm’s-length development of made-in-Canada sustainable investment guidelines, working with Business Future Pathways. The taxonomy is intended as a new voluntary market tool to credibly identify “green” and “transition” investments and to be aligned with global best practices and broadly compatible with other major science-based taxonomies and frameworks. Immediate next steps include establishing a new independent Taxonomy Council to review and ultimately approve the investment guidelines, supported by advisory groups and sector-focused working groups. The council is expected to finalize guidelines for three priority sectors by the end of 2026 and complete three additional priority sectors by fall 2027, with initial sectors to be selected based on where guidance could most support emissions reductions and low-carbon competitiveness. The government also reiterated plans for regular green bond issuances and said it will explore a Sustainable Bond Framework aligned with the taxonomy as it is developed. Budget 2025 work with provinces and territories to improve climate disclosure across the economy, seeking alignment with international standards and consistent rules across jurisdictions, was also referenced.

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