[Our] recommendations are aimed at ‘connecting the dots’ between Canada’s climate objectives, economic ambitions and investment imperatives. They seek to leverage Canada’s financial acumen to facilitate and accelerate market activities, behaviours and structures that – at scale – could put Canada and its key industries at the forefront of the transition to a climate-smart economy.” – Expert Panel Report
Spelling Out the Investment Opportunity
“Canada’s path to sustainable growth will require simultaneous efforts to combat the physical and financial effects of climate change, while helping our key industries competitively navigate the growing intersection between global market access and environmental stewardship.” – Expert Panel Report
The first of three pillars that make up the expert panel report on sustainable finance is rooted in the notion that climate change in Canada can be more opportunity than burden. This important shift, it suggests, will begin with mapping out our national pathway to a low-emissions economy, sector-by-sector, and identifying the investment required to successfully get there.
In other words, the capital requirement already implicit in the federal climate change framework should be made explicit. Sources of that capital – and anticipated gaps, under current circumstances – should be identified. Referred to as “Pan-Canadian Framework 2.0”, this investment plan would extend to 2050 and include realistic “climate-smart competitiveness visions for each of Canada’s key industries”.
The panel further recommends that individual Canadians be given more incentives and opportunities to connect their own retail investing and savings to climate objectives. This could happen by, for example, enabling investments in green bonds via RRSPs and defined contribution pension plans.
Finally as part of this pillar, the panel calls for creation of a standing, public-private Sustainable Finance Action Council. It would advise the federal government as it implements panel recommendations, with focus areas that would include creation of criteria to govern green and transitional funding mechanisms. |