The Taxonomy Roadmap Report, by the Sustainable Finance Action Council (SFAC), contains 10 recommendations addressing the merits, design and implementation of a green and transition finance taxonomy for Canada.

Taxonomies can provide a standardized approach for benchmarking economic activities that are consistent with domestic and global climate goals. They set screening criteria that allow users, such as investors, companies and financial intermediaries, to evaluate the climate credentials of economic activities (e.g., in connection with investment and business decisions). Globally, taxonomies to date have largely focused on setting criteria for green activities; however, there are growing efforts to broaden the scope to transition activities. Taxonomies are frequently used to set standards for classifying climate-related financial instruments (e.g., green bonds), but, increasingly, they serve other use cases where the benchmarking feature is viewed as beneficial, including in the areas of climate risk management, net-zero transition planning and climate disclosure.