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December 18, 2025 – Ottawa, Ontario – Department of Finance Canada

The Government of Canada is committed to mobilizing public and private capital to promote investment in sustainability, as part of the transition to net-zero. Budget 2025 reconfirmed the government’s support for the arm’s-length development of made-in-Canada sustainable investment guidelines, also known as a taxonomy, and committed to the selection of an external organization to lead it by the end of the year.

Today, the Honourable François-Philippe Champagne, Minister of Finance and National Revenue, announced the selection of the Canadian Climate Institute to lead the development of these guidelines, working with Business Future Pathways, bringing together representatives of major financial institutions and technical experts.   

The Canadian sustainable investment guidelines will be built on strong and independent governance and align with global best practices. These guidelines will become an important tool for investors, lenders, and other stakeholders, by credibly identifying “green” and “transition” investments. The Canadian taxonomy will be a new, voluntary market tool that will be aligned with and broadly compatible with other major, science-based taxonomies and frameworks around the world.

Canada has the necessary resources and talent to accelerate the growth of net-zero aligned activities, including developing technology to enable significant emissions reductions in higher emitting sectors. As the global demand for low-carbon goods and processes rises, the government is seizing this opportunity to promote sustainable finance and accelerate the flow of private capital into sustainable activities across priority economic sectors.

The Canadian Climate Institute will work collaboratively with Business Future Pathways, an investor-led initiative, to establish a robust and independent governance structure to oversee the development of science-based taxonomy criteria and undertake stakeholder engagement. Immediate next steps include establishing a new independent Taxonomy Council to review and ultimately approve investment guidelines. This Council and its advisory groups will include independent experts and representatives from academia, the financial sector and civil society, climate scientists, and Indigenous representatives. As efforts get underway, working groups with specific areas of expertise in key industries and sectors will also be established to inform recommendations to the Council.

The governing council is expected to finalize investment guidelines for three priority sectors by the end of 2026 to establish the made-in-Canada taxonomy, and complete three additional priority sectors by fall 2027. The council will collaborate closely with government, industry, and other key stakeholders to determine the initial priority sectors, based on consideration of where taxonomy guidance has the greatest potential to deliver emissions reductions and promote low-carbon competitiveness in the Canadian economy.