The global push to transition to a low-carbon economy represents a massive investment opportunity for Bay Street, according to a report published Monday by Toronto Finance International (TFI).

The report, Capitalizing on Sustainable Finance: A growth opportunity for Toronto’s financial sector, explores the potential for Toronto, and Canada more broadly, to develop a leadership role in sustainable finance.

It was released by TFI in collaboration with Ernst & Young LLP and Corporate Knights. TFI was formerly known as Toronto Financial Services Alliance.

According to the report. the goal of limiting global warming to under 1.5° Celsius by 2030 will require an estimated annual investment of US$500 billion.

“As North America’s second largest financial centre, Toronto is well-positioned to develop and expand expertise and talent in sustainable finance and capitalize on this economic opportunity, TFI says in a news release.

“Economics — not policy — is now the driving force toward a low-carbon sustainable economy. The Canadian financial sector has all the ingredients to accelerate and benefit from this capital-intensive transition. By focusing on the size of the prize, we hope this report will help galvanize Canadian financial sector leaders to seize upon the opportunity,” says Toby Heaps, CEO of Corporate Knights, in a statement.

The report proposes a number of actions that could be taken by the industry, governments, regulators, and others to try and seize the sustainable finance mantle.

“Through the careful consideration and adoption of these proposed actions, Toronto’s financial institutions have the opportunity to develop a leading global sustainable finance hub which can contribute to the growth of the sector, and better management of climate risk in Canada,” the report states.

“There are many examples of sustainable finance leadership across Canada from both the public and private sectors, however, a broader, co-ordinated strategy will be required to drive a more active and robust sustainable finance market in Canada,” says Jennifer Reynolds, TFI president and CEO, in a statement.

“This report examines the potential for the Toronto Financial Centre to develop a leading sustainable finance hub and the economic opportunity that could represent for the sector and the country.”