Public Comment Period Begins on Canada's Sustainable Finance Taxonomy

Feedback will help define what climate investment means in Canada and how it will apply to major sectors of the economy

• Newly released draft Methodology report sets ambition for a Canadian taxonomy that drives investment into businesses and projects that lower carbon emissions in alignment with Canada's legislated net-zero by 2050 target.
• Proposed taxonomy categories include "green", "transition", and a new "abatement" category, which would collectively help drive investment in clean growth and lower emissions.
• The draft report proposes an initial framework to reduce risks to people and nature, and honour Indigenous rights and sovereignty.
• The public comment period runs through August 13, 2026. To participate, visit: www.BusinessFuturePathways.ca

OTTAWA, ON, July 9, 2026 /CNW/ - Today, the public comment period begins on the draft Canadian Sustainable Finance Taxonomy: Methodology Report, which will serve as the "North Star" for the development of sustainable investment guidelines for major sectors of Canada's economy. The report invites feedback on foundational elements including: the taxonomy's categories and their definitions, technical criteria (i.e. rules for eligibility), and environmental and social safeguards.

A taxonomy works as a voluntary guidebook for sustainable investment. It establishes credible, science-backed definitions for economic activities that align with climate goals. Taxonomies help mobilize capital for the shift to a low-carbon economy by creating market clarity, addressing greenwashing, and increasing investor confidence. 

The first phase of Canada's taxonomy will focus on activities that reduce carbon emissions in alignment with the country's legislated target of net zero emissions by 2050. The independent Canadian Taxonomy and Transition Planning Council, working in collaboration with the Canadian Climate Institute and Business Future Pathways, has been mandated by the Federal government to develop taxonomy guidelines for six sectors by the end of 2027.

Based on historical emissions, potential to decarbonize and to enable decarbonization across other sectors, and investment promise, the Council has prioritized:

• Electricity
• Buildings
• Transportation
• Mining
• Manufacturing
• Agriculture/forestry.

Public feedback will help inform the final version of the "North Star" Methodology Report, which will become the backbone of sustainable investment guidelines for these six sectors. Draft guidelines for the first three sectors (electricity, buildings, and transportation), will be published for public comment before the end of 2026.

Who should participate and how
Individuals and organizations who may be interested in or impacted by the voluntary guidelines are invited to participate in the feedback process. This may include:

• Businesses and workers, particularly those related to the taxonomy's six priority sectors
• Indigenous Nations and communities
• Non-profits, academic institutions, and subject matter experts
• Those interested in how Canada will finance its low-carbon transition
• Financial institutions and investors.

The draft report is available for review and public comment at www.BusinessFuturePathways.ca. The deadline for public comment is August 13, 2026. 

Informational sessions covering the key elements of the draft report will be held on July 14, 2026 in English and French (registration is required). Those requiring additional support to participate in advance of the deadline, (e.g. to receive a mail-in questionnaire or arrange a separate briefing) may email: [email protected]. 

Quote
"This is the moment to weigh in on the first major step towards defining what climate investment means in Canada. The proposals in this draft report are relevant to major sectors of our economy, to those who work and invest in them, and to all organizations and communities that have a stake in Canada's transition. Ultimately, this work will underpin Canada's ability to compete for capital with our peers around the world."
     -     Marlene Puffer, Chair, Canadian Taxonomy and Transition Planning Council

Resources:

• Canadian Sustainable Finance Taxonomy: Methodology Report
• Business Future Pathways Public Comment Portal 
• Backgrounder: The Sustainable Finance Taxonomy's "North Star" Report

About Business Future Pathways
Business Future Pathways brings together financial and technical expertise to establish and advance the foundations for sustainable investment in Canada. Governed by the independent Canadian Taxonomy and Transition Planning Council, Business Future Pathways, provides practical made-in-Canada sustainable investment guidelines and transition plan guidance to help mobilize investment in Canada's clean growth and transition priorities.

About Canadian Climate Institute
The Canadian Climate Institute is Canada's leading climate change policy research organization. The Institute produces rigorous analysis, economic modelling, and in-depth research focused on incentivizing clean economic growth and low-carbon competitiveness, reducing emissions and accelerating Canada's net zero energy transition, and making our economy and infrastructure more resilient to a warming climate. The Institute is leading the technical research and advice for the development of Canada's sustainable investment guidelines.

Business Future Pathways and the Canadian Climate Institute gratefully acknowledge the Government of Canada's financial support for the development of Canada's Sustainable Finance Taxonomy.

SOURCE Business Future Pathways

Media requests: For background information or to arrange an interview, please contact Jessie Sitnick, Phone: [phone], Email: [email protected]