Opinion: Despite criticism, Canada’s taxonomy for green investment standards walks the line well

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Canada’s forthcoming climate taxonomy, which puts forth standards for identifying green investments, does a good job of a delicate balancing act

, not only defines “green” investments but also the more controversial “transition” investments.

Defining this transition category is admittedly harder than identifying green investments and requires a delicate balancing act, as identifying high-polluting activities that have viable, credible transition pathways is more complex. Yet the proposed taxonomy for Canada walks the line well. Climate taxonomies act like a gigantic sorting hat for the financial system, offering a standardized and science-based way to determine whether specific projects align or don’t align with climate goals. In doing so, taxonomies can help clear up thethat currently plagues climate finance globally. At the same time, taxonomies ensure that investment dollars flow to the projects most urgently needed to drive the energy transition, such as renewables, batteries and storage, or clean hydrogen.

 

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How much money has been collected in climate taxes? How has the climate been affected by those taxes?

Oh thank God the 'taxonomy' is intact. 🤣

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