Climate experts react to Deputy Prime Minister Chrystia Freeland’s announcement on sustainable finance

Toronto – Thousands of sustainable finance experts from around the world gathered in Toronto this week for a PRI face-to-face conference, providing an important opportunity to provide the Canadian federal government with details about Canada’s approach to sustainable finance. did.

While Canada is home to some of the highest levels of financing for oil, gas and coal, it is already listed by the United Nations as a “least regulated jurisdiction” for sustainable finance, so new finance Rules are desperately needed.

In her speech at the conference, Deputy Prime Minister Chrystia Freeland said she continues to push for mandatory reporting and sustainable finance labeling, known as taxonomy. But we must advance policies that truly align our financial system with Canada’s climate efforts.

The Government’s directive that the taxonomy must be scientifically aligned to 1.5 degrees is positive, meaning by definition that oil and gas should not be included in the sustainable finance taxonomy. While it is obvious to exclude the expansion of new fossil fuels from sustainability labels, gas pollutes the climate more than coal when extraction, cooling, and transportation are taken into account.

The government must deliver on its promise to represent civil society climate experts and indigenous rights holders, as these critical perspectives were missing from the initial process three years ago.

However, further progress on truly climate-adjusted finance, including the requirement for a 1.5-degree adjusted climate change plan, must be prioritized. Finance is a missing piece in Canada’s federal climate change plan, and new policies are needed to ensure our financial system is aligned with the goals of the Paris Agreement on climate change.

Julie Segal, senior program manager for climate finance at Environment and Defense Canada.

“These sustainable finance policies should be the foundation for our financial system to align with climate action. The definition of what is sustainable investing should be rigorously defined to avoid promoting greenwashing. It needs to be meaningful and driven by science, not politics.

While the government’s admission that new oil and gas projects are inconsistent with a safe climate is a positive step, investing in gas projects of any kind still risks trapping Canada in an anachronistic economy. There is. Today’s government announcements on classification and disclosure requirements for large companies are sensible, but in order to build credibility and move the financial system in the right direction, we need to strengthen the financial system, including through credible climate change demands. Further requirements are needed to align with climate change measures. It is an economy-wide plan. ”

Richard Brooks, Director of Climate Finance, Stand.earth Said:

“That’s clear from government reports. University of Toronto Yesterday, Canada’s largest financial institution announced it is not doing enough to accelerate the energy transition. They’ve done just the opposite, and their funded emissions are double Canada’s total emissions. This is why we need stronger financial regulation to drive real climate action from big banks and pensions. Today’s announcements on classification and disclosure are helpful, but our government needs to do much more to shift financial institutions from exacerbating the climate crisis to driving real climate solutions. ”

Karine Peroffi, Lawyer and Sustainable Finance Project Leader at Ecojustice, CAFA Legal Architect said:

“The publication of this taxonomy was aimed at determining what does and does not count as a ‘sustainable investment’. This is an element of a broader effort to align Canada’s financial sector with Canada’s climate efforts and ensure that one is not actively working against the other. What we got instead is that it leaves open the possibility of considering fracked fossil gas as a solution to climate change, and it doesn’t come close to reining in the financial sector’s investment practices that cause climate change. , was yet another “plan to finally make a plan.” If decision-makers are looking for inspiration to bring much-needed clarity to this field, we strongly encourage them to borrow from the proposed common-sense principles. Climate-smart financial law (CAFA), It is now before the Senate. ”

Adam Scott, Executive Director shift: Action for pension wealth and planetary health Said:

“Aligning Canada’s financial system with climate goals is essential to protecting our financial system and our planet. Policies to get us there must be fit for purpose. Done with climate change” The challenge is not about short-term marginal emissions reductions; it is about creating a systematic pathway to completely replace fossil fuels in our energy system. policies need to get this right to avoid asset stranding and climate failure.

Keith Stewart, Greenpeace Canada Senior Energy Strategist Said:

“Taxonomy and disclosure are good, but what we really need is for elected officials to establish clear rules for moving billions of dollars away from fossil fuels and into climate action.” Anything less is an insult to everyone who picks up the remains of life after unnatural disasters such as wildfires, floods, and storms fueled by the burning of fossil fuels.”

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Media inquiries contact information

Laura Bergamo, Greenpeace Canada, communications activist

[email protected] ; +1 438 928-5237

Alex Ross, Communications Manager, Environmental Defense

[email protected] ; +1 647 546-3230

Cari Siebrits, Communication Strategist, Ecojustice

[email protected] ; +1 647 620-1212