Given the challenges that need to be overcome if Canada is to achieve net zero by 2050, the financial industry is growing impatient with the absence of a framework that would help direct capital towards projects advancing transition efforts. Over a year ago, the Sustainable Finance Action Council (SFAC) provided the Canadian rpgegovernment with a classification system (also known as a taxonomy) that defines the criteria for “green” and “transition” projects.

However, the investment sector is still waiting for the Canadian government to give the roadmap its seal of approval.

Calls to action are growing. Today, a letter signed by a large number of Clean50 honourees urged the Canadian government to move these sustainable investment guidelines forward. Addenda Capital boasts two signatories: its President and CEO Roger Beauchemin, and Andrea Moffat, Senior Director, Investment Stewardship.

Allocating Capital to the Right Solutions

Roger Beauchemin addressed the topic last week, at the Globe and Mail’s Sustainable Finance Summit, as well as at a conference organized by the Cercle finance du Québec on the evolution of environmental, social and governance factors. “What finance needs are price signals and regulatory clarity. When we say that such and such an investment is aligned with a net-zero objective, it helps allocate capital to the right solutions,” he said during the latter.

“The transition in Canada is important, because our economy is very different from that in Europe, if only in terms of energy production. Why not move forward on a transition taxonomy? The framework on the table is so good that Australia has adopted it. In Canada, the investments needed to achieve carbon neutrality by 2050 are estimated to be as high as $125 billion a year. Without a transition framework, international investors won’t come to Canada,” Mr. Beauchemin added.

A replay of the Cercle finance du Québec conference can be viewed here.

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