Canada's first green finance rulebook leaves out oil and gas emissions

Canada finalized the framework for its first national sustainable finance taxonomy, voluntary guidelines meant to curb greenwashing by telling banks, pension funds and investors what counts as climate-friendly. It sorts investments in six sectors into two categories: green and transition.

Oil and gas share of Canada's emissions in 2024

30 %

A third category, for projects that cut oil and gas emissions, was dropped from the July draft after about two-thirds of consultation respondents opposed it. Oil and gas made up about 30 per cent of Canada's greenhouse gas emissions in 2024, according to federal data.

"The main reason is really feeling that we haven't been able to do sufficient due diligence as yet on what might make that category."

— Marlene Puffer, chair of the taxonomy council

What's next

The council will study the oil and gas category from 2027. Technical criteria for electricity, buildings and transportation are due in mid-2027, and for mining, manufacturing, and agriculture and forestry by the end of that year.