In order to reach climate and energy targets by 2030, it is vital to direct investments towards sustainable projects. That is why the EU created an EU-wide classification system for sustainable activities: the EU Taxonomy. This will provide companies, investors, and policymakers with appropriate definitions for which economic activities can be considered environmentally sustainable.
Canada has been influenced by the EU taxonomy, which is why a transition taxonomy will be released by the end of the year. The development of a transition finance taxonomy is being designed to influence sectors to transition towards a low-carbon economy.