The report proposes including widely accepted green investments as well as a contentious \u0027transition\u0027 category for emission reduction efforts in heavy industry
Environmental groups have criticized the inclusion of oilsands-related investments, as well as so-called blue hydrogen, in the transition category. They say such projects will still have significant emissions, and there are clear alternatives.
The transition category is important for industries like steel and cement that are emission-heavy but that will still be needed in a net-zero world, said Segal, but the inclusion of oil and gas projects muddies what is an attempt to provide clarity.Article content The SFAC report notes that there will still be oil and gas demand for decades so it’s also important to reduce emissions on existing production, but adds the transition category will include intensifying restrictions around what emission-reduction efforts on fossil fuel projects would be eligible.
She said there’s been a lot of progress on establishing green taxonomies internationally, but less work on the transition side so there’s an opportunity to help shape the thinking around it.Article content
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