“Is Canada Falling Behind in Climate-Related Financial Policies?”
Mark Carney, the former governor of the Bank of Canada and Bank of England, raised concerns about Canada’s slow progress in adopting global standards and green investing rulebooks in a hearing with the Senate banking committee. He emphasized that while allies are swiftly implementing these policies, Canada’s efforts have been lacking, putting the country at risk of losing investment opportunities and job creation.
**The Disparity in Climate Disclosure Efforts**
Mr. Carney pointed out the disparity between Canada’s climate disclosure efforts and the international standards set by organizations like the International Sustainability Standards Board (ISSB). While other countries are moving towards comprehensive disclosure of emissions along their value chains, Canada has been slow to align with these guidelines. This delay could hinder the country’s ability to attract sustainable investments and meet climate goals.
**The Urgency of Adopting Global Standards**
Carney highlighted the importance of Canada adopting a transition planning requirement and associated taxonomy for all firms, in line with the Glasgow Financial Alliance for Net Zero framework. This move would not only align Canada with global standards but also attract the necessary investment to achieve net-zero emissions by 2050, as estimated by the Sustainable Finance Action Council.
In conclusion, Canada’s hesitance to fully embrace international climate-related financial policies poses a risk to its competitive position in the global market. By prioritizing sustainability and aligning with global standards, Canada can not only attract investments but also accelerate its transition to a low-carbon economy. The time to act is now, before the country falls even further behind its allies in the fight against climate change.
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