Preface

The expert panel engaged widely with market participants and policymakers to identify how Canada can mobilise private capital for low-emissions, climate-resilient growth. The report distils market insights into practical actions to integrate climate considerations across finance and the real economy.

Introduction

Climate change creates material physical and transition risks, and significant investment opportunities. The panel’s mandate is to recommend how Canada can align financial system architecture, disclosure, data and markets to accelerate sustainable growth. It frames sustainable finance as core to competitiveness and prudent risk management, not a niche activity.

Pillar I. The opportunity

Canada can capture opportunities in clean technology, energy transition, buildings, infrastructure and grid modernisation by matching long-term savings with long-term investment needs. The panel notes strong global momentum—responsible investment signatories manage about US$83 trillion, and TCFD supporters span financial institutions with roughly US$110 trillion in assets—underscoring market relevance.
Recommendations include: (1) map sector-by-sector pathways to a low-emissions, climate-smart economy to give investors clarity; (2) make it easier for Canadians to channel savings to climate-aligned investments through mainstream products; and (3) create a standing Sustainable Finance Action Council to coordinate implementation across governments, regulators and industry.

Pillar II. Foundations for market scale

Scaling markets requires clear, comparable information and aligned supervisory expectations. The panel proposes: (4) establish the Canadian Centre for Climate Information and Analytics (C3IA) to provide authoritative climate data, scenarios and decision-useful analytics; (5) define a Canadian approach to implementing TCFD so disclosures become consistent, comparable and progressively decision-useful; (6) clarify fiduciary duty to explicitly include material climate factors; (7) build a knowledgeable support ecosystem (education, professional standards and guidance for issuers, intermediaries and investors); and (8) embed climate risk in monitoring, regulation and supervision, drawing on international practice. Together, these steps aim to reduce information asymmetry, lower transaction costs and improve risk pricing.

Pillar III. Financial products and markets for sustainable growth

Targeted market development can accelerate investment at scale:
• (9) Expand the green fixed income market and set a high-integrity Canadian standard to enhance investor confidence and issuer uptake; encourage public-sector benchmarking and catalytic issuance.
• (10) Make sustainable investment “business as usual” across asset classes by integrating climate factors in mandates, benchmarks, stewardship and product design.
• (11) Define Canada’s clean technology advantage and a financing strategy spanning venture, growth equity and project finance to improve commercialisation and scale-up.
• (12) Support oil and natural gas firms to become low-emissions global suppliers via transition-aligned finance, performance pathways and credible disclosure.
• (13) Accelerate a private building retrofit market using standardised contracts, aggregation, credit enhancement and labelling to mobilise institutional capital.
• (14) Align infrastructure strategy with long-term sustainable growth, embedding climate resilience and emissions objectives in planning, procurement and funding.
• (15) Engage institutional investors in financing an expanded, modernised electricity grid to enable electrification and integration of renewables, using suitable revenue models and de-risking tools.

Next steps

Implement through the Sustainable Finance Action Council, with early priorities on TCFD-aligned disclosure, launching C3IA, clarifying fiduciary expectations and mobilising flagship issuances in green and transition finance. Progress should be sequenced, measured and transparently reported, with ongoing alignment to international standards to keep Canada competitive while managing climate-related risks.