Feds moving forward on long-awaited sustainable investment guidelines

By The Canadian Press

OTTAWA — The federal government says it is moving forward on a long-awaited central list of investments considered to be sustainable.

The list, also known as a green taxonomy, is intended to make it clear what activities and investments fit within Canada’s climate goals and help to attract private capital to them.

The government says the Canadian Climate Institute, a government-funded independent think tank, will lead the effort, working with Business Future Pathways, an investor-driven group helping push corporate transition plans.

Finance Minister François-Philippe Champagne says in a statement that Canada needs to attract more private capital to build a low-carbon economy, while financial markets are demanding common standards on what’s considered green or transition investments.

Official guidelines, though voluntary to use, can help add credibility to green or transition bonds and allow investors to better assess sustainable investment products.

While many countries have already moved ahead with their own green taxonomies that cover areas like renewables, construction and bioenergy, Canada’s approach has also included a more contested “transition” category that could see investments going to high emitters like oilsands projects to reduce their emissions.

Jonathan Arnold, director of sustainable finance at the Canadian Climate Institute, says in a statement that the guidelines crucially help transform emission-intensive sectors that are central to the national economy.

The Canadian Climate Institute and Business Future Pathways have been tasked with establishing a governance structure to oversee development of the taxonomy, with finalized guidelines expected for three priority sectors by the end of 2026 and another three sectors covered by the end of 2027.

The government initially asked a group of experts in 2021 to provide recommendations on a taxonomy and has made several commitments since then to move ahead.

This report by The Canadian Press was first published Dec. 18, 2025.

The Canadian Press

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