Canada’s financial sector has a critical role to play in facilitating the shift to more sustainable economic growth, but its progress so far remains halting, according to the interim report of the federal Expert Panel on Sustainable Finance published Wednesday.
The financial sector has both the motive and opportunity to help lead the shift to sustainable growth. Indeed it’s estimated that the demands of the Paris Agreement will require nearly $100 trillion worth of investment over the next 10 years, the report says.
Indeed it’s estimated that the demands of the Paris Agreement will require nearly $100 trillion worth of investment over the next 10 years, the report says.
But that so far, Canada’s financial sector is “approaching sustainable finance reactively, tentatively, and in only a loosely co-ordinated fashion,” says the report.
For Canada to fulfil its potential on this front, it must “move faster and more decisively,” the report says. “This will require focus on areas that will significantly move the needle both with respect to environmental impact and long-term economic opportunity, including a focus on fostering and leveraging innovation.”
The interim report points to the need for greater certainty in terms of climate policy (including a price on carbon emissions) as a critical factor in facilitating innovation an investment, along with the development of “a cohesive national investment plan for achieving Canada’s 2030 targets [which] would provide markets and institutional investors a predictable view of the long-term pathway and opportunity.”
“Canada’s clean growth trajectory is a long play and will involve a broad suite of actions on the parts of governments and businesses, as well as integrated, multi-jurisdictional, multi-sector collaboration,” the report says.
The panel will be holding roundtable discussions on the findings of its initial report in the coming months. It is expected to produce a final report, with recommendations, in the spring of 2019.
“As the panel moves into further consultations, the intention is to shift from identifying areas that require more attention to developing practical, actionable recommendations,” the report says.
“This interim report is a critical first step toward finding practical solutions for a more sustainable and prosperous economic future,” says Catherine McKenna, minister of environment and climate change, in a statement.
“The expert panel’s interim report will help inform our discussions and investments moving forward, ensuring that Canada’s economy is well positioned to grow today, and into the future,” adds Bill Morneau, minister of finance, in a statement.