The Bank of Canada’s 2019 Financial System Review lists climate change as one of the main vulnerabilities facing Canada’s economy. The Global Commission on the Economy and Climate estimates that by 2030 the global market for solutions addressing climate change to be worth $26 trillion, creating as many as 65 million jobs globally.
Canada is poised to benefit from growth in the sustainability niche of the financial sector. To mitigate the looming crisis, Canada must implement changes to meet its Paris Agreement targets. This effort requires an infusion of capital that must include the financial sector. The government and taxpayers are nowhere near enough.
Canada’s Expert Panel on Sustainable Finance report, “Mobilizing Finance for Sustainable Growth,” recommends a 30-year transition plan to a sustainable economy which will require banks, institutional investors and investment firms to participate in a green economy.
Here are eight key recommendations:
For the investment community:
- Promote sustainable investment as ‘business as usual’ within Canada’s asset management community.
- Embed climate-related risk into monitoring, regulation and supervision of Canada’s financial system.
- Provide Canadians the opportunity and incentive to connect their savings to climate objectives.
- Expand Canada’s green fixed income market and set a global standard for transition-oriented financing.
A market for green investments would benefit goals such as:
- Accelerate the development of a vibrant private building retrofit market.
The energy sector is of particular importance. Recommendations include:
- Support Canada’s oil and natural gas industry in building a low-emissions, globally competitive future.
- Align Canada’s infrastructure strategy with its long-term sustainable growth objectives and leverage private capital in its delivery.
- Engage institutional investors in the financing of Canada’s electricity grid of the future.
TD Bank, Royal Bank of Canada and Assiniboine Credit Union, all listed as among Canada’s Greenest Employers, are just a few of the financial institutions already stepping up. The opportunities exist both for those working in the financial sector and those whose companies will benefit from green finance.
Because of its leadership in the financial sector, Toronto is an ideal location for our Certified CSR-P Training, Oct. 31-Nov.1, 2019. CSE will deliver its Certified Sustainability (CSR) Practitioner Program, Advanced Edition 2019 for a second time this year (April’s training was sold out!). Register now for early bird pricing or contact [email protected] for group pricing discounts.