Canada's Transition Angle to The Great Taxonomy Debate
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by Jason Taylor is Director of Sustainable Finance at Scotiabank. He is also Scotiabank’s representative to Canada’s Transition Taxonomy Technical Committee at the CSA Group.
Canada is on the cusp of having its own transition-focused taxonomy, a very welcome, important tool that will help the burgeoning sustainable finance market to develop and grow.
This set of standards – a shared playbook defining eligible assets and projects aimed at reducing carbon footprint – will be critical as Canada, and the world, strives to reach net-zero emissions by 2050.
Canada’s natural resource sectors have already taken steps to reduce emissions and plan for the needed shift to greener methods. The mobilisation of additional capital through specialised financial instruments such as transition-based bonds and transition-linked loans will enable that work to continue.