A new IISD report examines Australia's Sustainable Finance Roadmap and draws five recommendations for Canada as it builds its own sustainable investment taxonomy. Canada needs an estimated CAD 125 billion to 140 billion per year to reach net zero by 2050, but lacks the policy framework to attract that capital. The report urges Canada to align private investment with national emissions plans, exclude fossil fuel production from transition labelling, and integrate adaptation and nature indicators early. The report also calls for upholding Indigenous rights and establishing social safeguards in sustainable finance policy. It argues that without clear rules and tools, Canada will struggle to compete globally for green investment. Australia's approach shows how upgrading sustainable finance policy can reduce financial risk and support net zero goals, offering a template for Canada's next steps.
