Canada's climate investment taxonomy is expanding to include a new abatement category for oil and gas decarbonization projects like methane reduction and carbon capture. The Canadian Taxonomy and Transition Planning Council has opened a five week public consultation on the proposal, which aims to attract capital for the country's net zero targets. Environmental groups warn the move could enable greenwashing and weaken comparability with other countries' taxonomies. The taxonomy already includes green categories for non-emitting projects and transitionary categories for high emitting industrial processes. The new abatement category would cover oil and gas production, processing, and distribution. The council says guardrails will ensure projects meet climate goals. Green and transitionary categories are expected to launch before the end of 2025, with abatement measures developed further in 2027.
