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Friends of Science Society's Critique on Sustainable Finance Taxonomy

On August 13, 2026, the Friends of Science Society delivered a substantial response to Canada's Sustainable Finance Taxonomy report, coining the phrase "REcarbonize Canada." Their analysis critiques the reliance on outdated science to justify current climate policies, particularly the 2018 report by the Intergovernmental Panel on Climate Change (IPCC), which they claim is no longer relevant.

In their report, titled "Sustainable Finance Taxonomy – Out-of-Date Science and Greenwashing Unsustainability," the Friends of Science Society contends that three main pillars supporting the idea of an immediate climate catastrophe have crumbled in the past year. They argue that the climate catastrophe scenario termed RCP 8.5 has been deemed implausible by the global climate modeling community associated with the IPCC. Additionally, the climate risk economic damage function previously used to assess climate risk has been officially withdrawn.

They further assert that a 2004 study claiming that decarbonization could be achieved using available technology was not only misguided but had ties to corporate interests in the fossil fuel sector, which undermines its credibility. Renowned physicist Prof. William van Wijngaarden has backed their stance, highlighting that the pursuit of net zero emissions is creating more harm than good, especially for societies dependent on traditional energy sources.

The Friends of Science Society argue that instead of focusing on decarbonization, regulators should rescind the stringent climate risk reporting directive established by the Office of the Superintendent of Financial Institutions (OSFI). They advocate for financial institutions to redirect their investments towards the oil and gas sector, proposing it could reinvigorate Canada’s economy and establish energy security for the nation. In their view, Canada's path to becoming a global energy superpower lies within its fossil fuel resources.

B-15, the guideline set by OSFI, currently stipulates that only energy projects utilizing Carbon Capture and Storage (CCS) can qualify for sufficient financing and insurance. The Friends of Science Society argues that this policy has led to significant misallocation of resources, encouraging what they term a misleading