Trip the light fantastic: Canada must be principled, practical, and timely as it develops its sustainable finance taxonomy

To “trip the light fantastic” is an expression dating back to John Milton’s poem L’Allegro in 1631, popularized in a song more than a century ago; it means to dance nimbly and agilely. In the context of this article, originally published in the Canadian Business Law Journal, it refers to the Taxonomy and Transition Planning Council’s need to navigate the complexities of international norms and diverse domestic views of what qualifies as sustainable finance, particularly “transition finance”, in a manner that is nimble, timely, science-based, and accountable. The article examines three leading jurisdictions that have already adopted taxonomies and offers insights into the benefits and risks of various paths to adoption.