Rules and Tools From Australia’s Sustainable Finance Roadmap
Insights for Canada’s sustainable finance future
This report provides an overview of the rules and tools employed in Australia’s Sustainable Finance Roadmap along with five recommendations that Canada should consider. As Canada develops its first sustainable investment taxonomy, it must also address how its financial sector manages climate risk disclosure and transition planning. Australia shows how upgrading sustainable finance policy can reduce financial risk and support investments in net-zero goals.
Recommendations
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Accelerate domestic decarbonization by championing policies that align private investment with national emissions reductions plans. Be intentional about prioritizing rules and tools for sectors that can decarbonize rapidly and compete in a net-zero future.
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Exclude fossil fuel production activities from transition labelling; sustainable finance policy and labelling must support activities that move Canada’s economy toward net-zero.
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Integrate adaptation and nature indicators and goals early to support key economic sectors and nature-positive investment. Back Canada’s biodiversity and nature advantage by prioritizing its value through sustainable finance policies.
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Uphold Indigenous rights and establish social safeguards for corporate engagement with Indigenous Peoples. The financial sector should be a tool of reconciliation, respecting Indigenous rights and governance, while guiding investor activities toward best practices.
Canada needs an estimated CAD 125 billion–140 billion in annual investment to achieve a net-zero economy by 2050. But without a climate-aligned sustainable finance policy framework, Canada will not be able to attract and accelerate the investment needed to become a clean energy superpower, reduce emissions, and catalyze green industrial growth.
This report applies lessons from Australia to Canadian sustainable finance policy-making at a crucial moment for national decarbonization. With a clear sustainable finance policy framework, Canada can better compete globally for green and transition investment and ensure investors have the guidance they need to unlock billions in sustainable investments.
Participating experts
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