Research
Credible Taxonomy Canada shares research authored by members of its steering committee and partner organizations. These materials build upon the Principles for a Credible Canadian Taxonomy. Research published on this site should not be attributed to the signatories of the Principles, whose endorsement applies only to the Principles themselves.
Beyond Gas
Financing a Net-Zero Electricity Grid with a Paris-Aligned Taxonomy
Rising electricity demand means that Canada must invest over $1 trillion to build out its electricity system. In order to meet its climate goals, Canada must shift away from the use of natural gas in its electricity sector. Natural gas use must therefore be excluded from the electricity sector guidance in Canada’s sustainable finance taxonomy. Labeling gas as green or transition-aligned in the taxonomy would (1) contradict Canada’s climate goals, even if gas is combined with carbon capture and storage, (2) impose a significant opportunity cost on Canada’s decarbonization efforts, and (3) conflict with net-zero progress and planning already underway, reducing socio-economic benefits for Canadians.
The Taxonomy Fossil Fuel Conflict
Why Oil and Gas Inclusion Would be Counterproductive
Canada’s sustainable finance taxonomy cannot credibly include oil and gas. The report outlines why including any oil and gas activities in the taxonomy would (1) invite manipulation and greenwashing from industry (be ‘gameable’), (2) be unworkable in practice, and (3) be misguided.