Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: ESG, Financial Inclusion, Sustainable Finance
Mark Carney Elected Prime Minister, Fintech Implications
Innovation Economy | April 29, 2025
Image: Freepik
Will Mark Carney’s Liberal Platform Policies Boost Canada's Digital Finance Sectors?
Mark Carney has been elected as Canada's 24th Prime Minister after leading the Liberal Party to win the 2025 federal election. The Liberals secured 168 seats (just shy of a majority), and are expected to form a minority government. Prime Minister Mark Carney has already spoken with President Trump about the pressing issues of tariffs, trade war and 51st state rhetoric, and the two leaders have agreed to meet in person.
See: Does CUSMA Support Fintech Services Across Borders?
While those issues are of critical importance to Canada's sovereignty, this article looks at Carney's past public comments and Liberals 2025 platform to get a sense for the implications for Canada's fintech sector under his expected leadership.
In 2019, Carney was the Governor of the Bank of England (BoE) and said the following at the Innovate Finance Global Summit:
“A new economy requires a new finance... to serve the digital economy, to support the major transitions underway across the globe and to increase the sector’s resilience”.
The newly elected Prime Minister of Canada has a deep background in finance, global networks, and a steady hand at innovation. He's expected to speed up payments modernization, support the responsible AI development, foster fintech investment, tighten crypto rules, and open more global markets to Canadian companies. The Liberal Party commitments that support innovation include financial technologies and sustainable finance, infrastructure investment, internal trade reform, red tape reduction, and a patent box regime, all told would help strengthen the economy and fintech growth.
Digital Payments and Open Banking
When Carney was leading the BoE, he signalled strong support for opening payments infrastructure to non-bank providers, helping to boost innovation and competition. In Canada, the implementation of open banking and payment modernization initiatives (i.e. Real Time Rail System) have sadly faced prolonged delays. Carney is expected to speed up these rollouts to benefit consumers and competition. Open banking will give consumers control over their financial data and allow fintech companies to create new services, while the operating firms must meet high security and operational standards.
See: Open Banking Delayed to 2026, Favours Banks Over Innovation
- Key impact: Faster payments, wider fintech participation, tougher regulatory expectations
Increase Internal Trade and Fintech Access
As part of its 2025 platform, the Liberal government committed to eliminating federal barriers to interprovincial trade and labour mobility by Canada Day. Reducing costs and aligning standards could benefit fintech companies that must constantly track and adjust to changing and inconsistent provincial compliance requirements, in sectors like payments, insurtech, wealthtech, and others. Streamlining trade and regulatory barriers would help fintechs expand nationally more effectively, reduce legal and operational costs, and also contribute to offering consistent services to customers and businesses from coast to coast.
- Key impact: Easier national growth for fintechs, reduced legal friction, more uniform compliance standards
Artificial Intelligence in Financial Services
Carney spoke about how emerging technologies are game-changing finance in a 2018 Mansion House speech “New Economy, New Finance, New Bank”, where he acknowledged AI's growing impact on credit and risk systems.
See: AI Concierge Tech and the Future of Finance
Under his government, Canada is expected to advance the Artificial Intelligence and Data Act to regulate high impact AI systems including financial firms using AI for credit scoring, fraud detection, or robo advising to ensure responsible AI standards are met for fairness, explainability, and consumer protection.
- Key impact: Government support for AI fintech, together with new compliance obligations
Startups and Innovation
Immediately after securing Liberal leadership, Carney axed the controversial capital gains tax hike, directly supporting Canada's innovation economy. Under his leadership, Carney could expand access to venture capital, innovation incentives, and encourage national regulatory alignment for startups operating across multiple provinces. The Liberal platform also supports a patent box regime, focused on scaling high growth firms, retaining intellectual property in Canada, and improving commercialization outcomes from public and private R&D. The Liberal 2025 Platform outlines efforts to increase business investment and create a more competitive innovation environment, especially for sectors like fintech and AI.
- Key impact: Stronger investment climate, more competition, stronger IP incentives, reduced regulatory burden, and higher regulatory standards for scaling
Crypto, Blockchain and Digital Assets
Although Carney previously showed openness towards regulated forms of crypto innovation, in 2018, he spoke critically of unbacked crypto assets and called Bitcoin “neither a store of value nor a useful means of exchange”. It's expected that he'll tighten oversight of crypto exchanges, stablecoin issuance, and asset custody. Lastly, while Carney hasn't explicitly endorsed a Canadian CBDC, he has called for central banks to explore sovereign digital currencies as tools to support monetary policy and financial stability. During a 2019 speech at the Jackson Hole Economic Symposium, for example, Carney proposed the idea of a "synthetic hegemonic currency" (SHC) as a potential solution to the destabilizing dominance of the U.S. dollar in the global financial system.
- Key impact: Stricter crypto regulation but opportunities for enterprise blockchain and public digital currency infrastructure
Sustainable Finance and ESG Innovation
Mark Carney is one of the most prominent global figures in sustainable finance. He co-founded the Glasgow Financial Alliance for Net Zero (GFANZ) and served as the UN Special Envoy on Climate Action and Finance. His leadership brings a strong focus on aligning financial systems with climate goals. The 2025 Liberal platform commits to supporting green innovation and transitioning Canada toward a low-carbon economy. This creates opportunities for fintechs in areas like ESG data services, green lending, climate risk modeling, and carbon trading infrastructure.
See: CSA Pauses Climate and Diversity Disclosure Rules
- Key impact: Stronger support for climate-focused fintechs, growth in ESG data platforms and green investment tools
Digital Inclusion and Infrastructure
Carney is expected to support broader digital financial access across Canada. In his 2018 “Future of Money” speech, he emphasized the role of digital identity, financial modernization, and infrastructure in improving inclusion. While he has't directly addressed digital ID for Canada, the Liberal platform’s national digital readiness strategy includes high speed rail and northern connectivity projects that could help bring digital banking and fintech services to underserved and remote communities.
- Key impact: Broader fintech access in underserved regions, improved infrastructure, and support for challenger banks
Opportunities and Challenges
| Opportunities | Challenges |
| Launch of real time payments and open banking | Meeting tougher compliance and risk standards |
| New funding for AI, fintech innovation, and green finance | Higher expectations for responsible AI and cybersecurity |
| Stronger startup investment environment and patent box incentives | Adapting to stricter crypto and stablecoin rules |
| Global trade partnerships and reduced internal trade barriers | Competition from international fintech firms |
| Possible leadership in digital identity and CBDC projects | Regulatory complexity for multi jurisdictional firms |
| Growth in sustainable finance and ESG fintech | Evolving global standards for ESG data and disclosures |
| Growth in digital access through national infrastructure | Uneven fintech access in rural and remote communities |
Outlook
Mark Carney's credentials offer an elite tier of credibility in global finance, climate leadership, and modernization of financial systems. Together with the Liberal 2025 Platform's strategic commitments to innovation, interprovincial trade liberalization, red tape reduction, and IP commercialization, his leadership is desperately needed to improve Canada's flailing productivity, upgrade its financial ecosystem, build public trust and international competitiveness.
See: Carney Shakes Up Leadership and Vows to Protect Canada
His background also positions Canada to lead in sustainable finance, aligning innovation with global climate goals. For fintech entrepreneurs, investors, and policymakers, the Carney era is underpinned by stable governance and a clear vision, offering a mix of opportunity and responsibility.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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CSA Pauses Climate and Diversity Disclosure Rules
DEI Regulation | April 25, 2025
Image: Freepik
Canadian Regulators Halt Plans for Mandatory Climate and Diversity Disclosures
On April 23, 2025, the Canadian Securities Administrators (CSA) announced that it is pausing plans to create mandatory rules for climate and diversity reporting, since the U.S. Securities Exchange Commission (SEC) has cancelled their DEI initiatives and the need to focus on making Canadian markets more robust, efficient and competitive.
See: How Canadian Institutional Investors Voted on Climate 2024
Stan Magidson, CSA Chair and Chair/CEO of the ASC:
“In recent months, the global economic and geopolitical landscape has rapidly and significantly changed, resulting in increased uncertainty and rising competitiveness concerns for Canadian issuers,”
Material Risk Disclosure Still Required
Although proposed rules requiring companies to disclose more detailed information about climate risks and board diversity is not moving forward, companies must still adhere to the current rules under Canadian securities law that require disclosure of any material risk that would significantly impact the business or its investors, including climate-related risks.
For companies wondering about the Canadian Sustainability Standards Board (CSSB) standards (CSDS 1 and CSDS 2) that were introduced last December 2024, they are 'voluntary but encouraged'. These standards offer a framework for sustainability disclosures that are aligned with international norms but they will not be enforced unless circumstances change.
CSA Still Monitoring for Greenwashing and Diversity Rules Stay As-Is
While there are no new diversity requirements being added, non-venture issuers (companies listed on senior public stock exchanges, such as the TSX or NEO), are still required to report on representation of women on boards and in executive positions, covered under the existing rules in National Instrument 58-101.
See: Planetary Health Check 2024 and Canadian Climate Tech
The CSA says it will continue to monitor public company disclosures for misleading or incomplete climate claims (i.e. greenwashing) and may provide future guidance if needed.
Why It Matters
Some investors and advocates for diversity and inclusion may be disappointed by the pause on mandatory disclosure rules. At the same time, many companies are likely to appreciate the flexibility to use voluntary standards, especially given the current economic and regulatory landscape.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Canadian Tech Open Letter to Defend Diversity & Inclusion
Advocacy | Feb 28, 2025
Image: Freepik/rawpixel.com
A Call to Action for Canada’s Tech Industry - Defending DEI
The Canadian tech industry is facing a critical moment in responding to the push back against diversity, equity, and inclusion initiatives otherwise known as 'DEI'. Almost 1000 tech and innovation founders, executives, and investors have signed an open letter titled "Innovation Includes Everyone" in support of DEI, a initiative spearheaded by Laura Gabor (Ecologicca/What in the Tech), Avery Swartz (Camp Tech), Sarah Stockdale (Growclass), Arlene Dickinson (District Ventures Capital), and Amber Mac (AmberMac Media), among many others, to ensure Canada's tech ecosystem remains inclusive by working together to raise awareness, mobilize support, and advocate for stronger DEI commitments in the tech industry. They believe that diversity drives better ideas, stronger businesses, and a more inclusive economy.
See: Why is venture capital still ignoring women? The case for investing is clear.
There have been concerns raised recently about some of Canada’s largest tech companies quietly scaling back support for marginalized communities such as women, 2SLGBTQIA+ individuals, Black and Indigenous professionals, and newcomers. The open letter calls on the tech community and policymakers to reject efforts that undermine inclusion and to stand firm in support of equity. It emphasizes that Canada’s strength lies in its ability to embrace talent from all walks of life and that businesses should not prioritize profit over people.
Global Trend in Scaling Back DEI
Alarm bells are ringing due to a broader global shift towards policies that weaken protections for marginalized groups. The political climate, especially in the U.S. with the new Trump administration, has created uncertainty around corporate DEI initiatives, leading to some Canadian corporations with U.S. operations adjusting their commitments to avoid potential backlash. Corporations are also under economic pressure dealing with budge cuts. Some businesses are deprioritizing DEI programs citing economic survival. There are even social activist movements arguing against DEI initiatives that are causing some companies to reconsider their approach in the face of potential consumer pushback.
However, despite these rollbacks, public sentiment in Canada remains largely in favour of DEI programs. A 2020 Statistics Canada survey found that 92% of Canadians aged 15 and older agreed that ethnic or cultural diversity is a Canadian value. According to Benefits Canada, a 2023 World 50 Group survey revealed that 72% of business leaders increased their organization's investment in DEI over the past year.
The Best Talent Comes from Inclusive Hiring
A common argument against DEI is the idea of hiring the “best person for the job.” However, finding the best talent is impossible without an inclusive hiring approach. By ensuring diverse candidates are considered, businesses in fact expand their talent pool which leads to higher-performing teams. Multiple studies have found that diverse companies outperform their competitors in revenue, innovation, and employee engagement.
NCFA’s Commitment to Inclusion
The National Crowdfunding & Fintech Association of Canada (NCFA) has always championed inclusion and the underrepresented, advocating for opportunities that empower individuals and businesses alike. Through awareness-building, collaboration, and action, NCFA remains committed to closing gaps and fostering an equitable innovation ecosystem.
See: How Fintechs Are Tackling Financial Inclusion in Canada
A common argument against DEI is the idea of hiring the “best person for the job.” However, finding the best talent is impossible without an inclusive hiring approach. By ensuring diverse candidates are considered, businesses in fact expand their talent pool which leads to higher-performing teams. Multiple studies have found that diverse companies outperform their competitors in revenue, innovation, and employee engagement.
Call To Action
Canada must remain a leader in inclusive innovation. If DEI efforts are abandoned, the industry risks losing what makes it a thriving, world-class tech hub. The letter urges all Canadians to take action by supporting businesses that uphold these values and holding those that don’t accountable. The petition remains open for signatures. Join now by adding your name to the growing list of supporters at What in the Tech?, and collectively let's ensure innovation truly remains whole!
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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How Canadian Institutional Investors Voted on Climate 2024
Climate Report | Feb 27, 2025
Image: 2024 Canadian Climate Voting Record (Investors for Paris Compliance)
Institutional Investors in Canada Show Mixed Climate Commitments
The organization Investors for Paris Compliance recently published their 2024 Canadian Climate Voting Record (14 page PDF report), which tracks how Canadian institutional investors voted on climate-related shareholder proposals. While Canadian investor support for climate resolutions increased to nearly 65% in 2024, there's a global pullback on ESG reporting, making Canada's voting record stand out.
Global Pullback on ESG/Climate Reporting
Canadian investors have shown more support for climate resolutions but globally opinions on ESG investing are becoming more divided.
In the U.S., some states and asset managers are pulling back from ESG commitments due to political and regulatory pressure. According to Business Insider, BlackRock has softened its stance on ESG by removing diversity, equity, and inclusion (DEI) language from key documents, in response to growing criticism from certain investors, however they continue to emphasize sustainability.
In Europe, regulators are also adjusting their approach by proposing to ease sustainability reporting rules to reduce burdens on businesses and improve their global competitiveness. Despite this, many European institutional investors remain committed to net-zero goals.
What Types of Votes Are Taking Place?
The 2024 Canadian Climate Voting Record analyzed how institutional investors voted on climate-related shareholder proposals such as:
- Requiring companies to disclose how climate risks impact their business
- Encouraging companies to set clear, transparent, and scientifically based goals for reducing emissions
- Pushing for measurable actions to reduce carbon emissions and transition to cleaner energy
See: Planetary Health Check 2024 and Canadian Climate Tech
While only 4 climate resolutions were voted on at Canadian companies, Canadian investors voted on many resolutions at U.S. and global firms where they hold shares.
Who and How They Voted?
Some Canadian institutional investors are leading the charge, while others remain cautious.
Image: Summary of 2024 Climate Votes (Investors for Paris Compliance)
The top investors in support of climate shareholder proposals:
- All voted 100% in favour of climate resolutions: AGF Investments, NB Investments, Canada Post Pension Plan, IMCO, University Pension Plan, and NEI Investments
- Strong support: BCI (88.2%) and CDPQ (90%)
Many of Canada’s largest financial institutions had weaker records:
- Moderate support: TD Asset Management (70.6%), Ontario Teachers’ Pension Plan (75%), and CIBC (64.7%)
- Laggards: Manulife (41.2%), AIMCO (41.2%), and BMO GAM (47.1%)
- Least supportive of climate related resolutions: Canada Pension Plan (29.4%), RBC GAM (11.8%), and Scotia GAM (0%)
Select Takeaways
- While only 4 climate resolutions were voted on at Canadian companies, Canadian investors voted on many resolutions at global firms
- One issue that the report highlights is the lack of a unified policy on climate issues resulting in split votes among large asset managers like RBC GAM, Manulife, and Scotia GAM, where different portfolio managers voted inconsistently on the same resolutions
See: Canada’s Shift to Enhanced Climate Disclosures
- Canadian investors were more likely to support climate proposals at U.S. companies (65.8%) than at Canadian firms (55.5%), raising concerns about domestic engagement
Conclusion
With the 2025 AGM season approaching, will Canadian investors push for stronger climate commitments or continue their cautious approach?
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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AI Energy Score Ratings A Step Towards Transparency in AI
AI | Feb 26, 2025
Image: AI Energy Score Label (salesforce.com)
Canada's Cohere Helps Drive AI Energy Score for Sustainable AI
Electricity, data centers, and energy infrastructure oh my. That's right. As the demand for artificial intelligence (AI) energy grows with adoption, sustainable and transparent AI coalitions like the AI Energy Score initiative could become a critical standard in measuring the energy efficiency of AI models, empowering individuals, businesses, researchers and policymakers make informed decisions on AI usage.
By 2028, AI data center electricity consumption could consume up to 12% of the total electricity in the United States, a hockey stick increase from 4.4% in 2023. While the U.S. is planning to add 46 gigawatts of new natural gas capacity by 2030 to help meet this demand (equivalent to the entire electricity requirements of Norway), industry and governments globally are recognizing the urgency for energy capacity and making AI more energy efficient.
Introducing AI Energy Score
A coalition of industry leaders including Salesforce, Hugging Face, Canada's Cohere, and Carnegie Mellon University launched the AI Energy Score initiative, to provide a standardized way to measure and compare the energy efficiency of AI models. AI Energy Score evaluates AI models based on their power consumption when making predictions or generating responses called 'inference' (not when training LLMs) and assigning each a star rating of 1-to-5.
A public leaderboard ranks over 166 AI models across categories such as text generation, image generation, summarization, automatic speech recognition, and object detection, so users can compare energy efficiency across different tasks.
Developers can also submit their models for evaluation through a benchmarking portal.
And as you may expect, similar to ENERGY STAR labels for household appliances, AI models that meet high efficiency standards receive recognizable energy-use labels.
How the Rating System Works
The AI Energy Score evaluates models across ten AI tasks and energy use is measured in watt-hours per 1,000 queries to establish a standardized assessment. Each model is then assigned a star rating based on its efficiency. The top 20% most efficient models receive a five-star rating, while the least efficient 20% receives one star. The leaderboard is updated every six months to reflect new advancements and ensure the ranking system remains relevant.
Cohere’s Involvement and Canada's Action
Toronto based startup Cohere, an AI company specializing in large language models for enterprise is the only known Canadian firm participating in the AI Energy Score initiative at this time, signalling Canada’s growing awareness of the need for AI energy efficiency. Note Canada has built a strong reputation in AI research through institutions like Mila in Montreal, the Vector Institute in Toronto, and Amii in Edmonton.
See: Canada’s AI Competition Report Faces Big Tech Challenges
The Canadian government has started recognizing the challenges posed by AI’s energy consumption. The Standards Council of Canada (SCC) recently emphasized the need to balance AI innovation with sustainability and data integrity. In a 2024 policy brief, SCC warned that AI’s growing energy demand could hinder Canada’s climate commitments if left unchecked. In response, the government has proposed a $15 billion incentive package to attract energy-efficient AI data centers to Canada. It has also aligned with international AI governance efforts, such as the Global Partnership on AI (GPAI), seeking to establish sustainability standards for AI development.
Canada is also moving on legislation. The Artificial Intelligence and Data Act (AIDA, part of Bill C-27), focused on regulating AI transparency and accountability. However, Canada has not yet formally joined initiatives like the AI Energy Score or the Coalition for Sustainable AI.
Implications of AI Energy Rating Standards
If energy ratings for AI models become widely adopted then all stakeholders will start prioritizing efficiency. In practice this might mean companies would begin selecting AI models based on their energy usage (similar to how businesses evaluate their carbon footprint today when deciding certain policies). During the transitional period of adoption to new ratings, companies building AI products while optimizing for energy efficiency could use that as a competitive advantage.
Investors may also begin favouring AI firms that disclose energy consumption data as part of their support for transparency and sustainable AI, unlocking new funding opportunities.
See: Will Nuclear Fuel the Data-Driven Future?
Governments may introduce regulations requiring AI models to meet minimum efficiency benchmarks to ensure AI innovation and development efforts align with broader climate goals.
Will Canada Take a Leadership Role?
Canada must decide whether to help lead in AI energy transparency or risk falling behind. While Cohere’s participation in the AI Energy Score is a positive step, there is currently no national strategy on AI energy ratings. The AI Energy Score represents one of the first major efforts to standardize energy transparency in AI and its adoption would change how businesses, governments, and investors evaluate AI models. It's often said that Canada has the opportunity to lead in sustainable and responsible AI but it will require deeper engagement from policymakers, industry leaders, and research institutions.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Planetary Health Check 2024 and Canadian Climate Tech
ESG | Feb 14, 2025
Image: Planetary Health Check (1st Edition, Planetary Boundaries)
Seizing the Green Economy: The State of the Planet and Fintech Opportunities
Planetary Boundaries Science published the inaugural edition of the 2024 Planetary Health Check, (view 96 page PDF report) that delivers a scientific assessment of the current state of mother earth, revealing urgent environmental challenges that are in need of sustainable finance strategies and investments. All of this points to the growing focus of sustainable finance, green fintech, and climate risk mitigation. Canadian policymakers, institutions, and financial technology startups have a key role in supporting the transition towards a sustainable economy.
Key Statistics and Fintech Solutions
It's important for financial leaders to recognize the biggest environmental challenges we collectively face today. Below are key statistics derived from the Planet Health Check 2024 report, along with select innovative Canadian fintech and climate tech companies working to solve these problems:
1. Climate Change
- Carbon dioxide levels in the atmosphere have risen to 419 ppm, higher than at any point in the past 15 million years.
- Average global temperatures are now 1.2°C warmer than before the industrial era, leading to more extreme weather events.
- The Earth’s energy balance has been disrupted, with radiative forcing exceeding the safe limit of +1.0 W/m², now at +2.79 W/m², intensifying global warming.
- CarbonCure Technologies turns captured CO₂ into sustainable concrete, reducing emissions in the construction industry. CERT Systems converts CO₂ into valuable fuels and chemicals, supporting a circular carbon economy.
2. Biosphere Integrity and Biodiversity Loss
- Over 75% of the Earth’s land surface has been significantly altered by human activity.
- Loss of species diversity is happening 100 to 1,000 times faster than the natural rate, threatening ecosystems and food security.
- The amount of energy supporting ecosystems has dropped by over 20% worldwide, disrupting the balance of nature and harming wildlife habitats.
- Veritree uses blockchain to track and verify reforestation projects, ensuring transparency in ecosystem restoration investments.
3. Land System Change
- The world's forests are shrinking at an alarming rate, with the Amazon rainforest alone having lost 17% of its total tree cover, pushing forest loss beyond safe limits.
- Every year, more than 10 million hectares of forests are cleared, mainly to make space for farming, infrastructure, and resource extraction, accelerating habitat loss and climate change.
See: The Role of Fintech in the Circular Economy
- Summit Nanotech is pioneering sustainable lithium extraction, reducing the land degradation caused by traditional mining operations.
4. Freshwater Use and Scarcity
- More than half of the world's major rivers now go through severe water shortages at certain times of the year.
- Soil moisture levels have become 15% more unpredictable since the early 1900s, making it harder to grow stable food supplies.
- Farmers Edge uses AI-driven precision agriculture to optimize water usage, reduce waste, and improve yields, helping to secure food supply chains.
5. Nutrient Pollution from Fertilizers
- The amount of nitrogen added to the environment by fertilizers and industry is now 190 million tonnes per year, which is more than twice the natural level.
- Excess phosphorus from farming has created over 500 oxygen-depleted zones in the oceans, covering an area of more than 245,000 square kilometers, harming marine life.
- e-Zinc pioneers zinc-based energy storage, enabling long-duration renewable energy storage and reducing reliance on synthetic fertilizers for energy-intensive farming.
6. Pollution & Waste
- The world produces over 400 million tonnes of plastic every year but only 9% of it gets recycled, leaving the rest to pollute land and oceans.
- More than 350,000 synthetic chemicals are in our environment today, and many of their effects on nature and human health are still unknown.
- Climate Smart and Carbonhound provide carbon management tools for Canadian companies, helping them measure and reduce pollution and waste while improving ESG compliance.
Policy and Regulation
Canada is making it mandatory for businesses and financial institutions to disclose climate-related information. The federal government has introduced new rules based on the Task Force on Climate-related Financial Disclosures (TCFD) guidelines.
- Starting in 2024, banks, insurance companies, and other federally regulated financial institutions must report their climate-related financial risks according to TCFD framework.
- The government is changing the Canada Business Corporations Act (CBCA) to require large private companies to report their climate-related financial impacts.
- Canada is also creating clear guidelines for sustainable investments to prevent greenwashing and set clear standards for climate-related investments.
Climate Tech Investments and Incentives
Canada has committed substantial funds to climate technology innovation, presenting a major investment opportunity:
See: RBC and Carbonhound Partner to Automate Carbon Management
- In 2023, climate tech investment in Canada reached $1.1 billion in cleantech.
- Canada introduced tax credits to support clean technology, including the Clean Technology Investment Tax Credit (CT ITC) and the Clean Economy Investment Tax Credits, which offer refundable tax credits for businesses investing in clean energy, clean hydrogen, and carbon capture. (Government of Canada)
- BDC Climate Tech Fund itself is allocated $400 million, however BDC's total clean and climate tech commitment is $1 billion
Outlook
The Planetary Health Check 2024 is (another) wake-up call for the financial industry. Canadian fintechs and investors have an opportuity to make a difference by focusing on climate-focused investments, green financial innovations, and sustainable business models. With billions in investment and grant opportunities already available, financial leaders can take advantage of growing climate tech opportunities and help Canada become a global leader in sustainable finance.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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RBC and Carbonhound Partner to Automate Carbon Management
ESG | Feb 13, 2025
Image: Freepik
RBC and Carbonhound Partner to Bring Automated Carbon Management to Canadian Businesses
On February 20, 2025, RBC announced an ESG collaboration with Carbonhound to provide automated carbon management solutions for Canadian companies. This sounds like a great initiative where businesses of all sizes are increasingly under pressure to track and reduce their carbon footprint. Technology is helping small and medium-sized (SMEs) companies in particular who struggle with the complexities of carbon reporting, empowering how they approach sustainability.
See: How Carbon Pricing Impacts Fintech and Investment Strategies
Niranjan Vivekanandan, EVP and COO, Commercial Banking at RBC:
"We are excited to work with Carbonhound to offer our clients an accessible solution that is designed to manage and report carbon emissions. Together, we aim to enable Canadian businesses to make and measure progress in their transition to a low-carbon economy."
Why Carbon Management Matters for Businesses
The Canadian government pledged to reach net-zero greenhouse gas emissions by 2050 backed by the Canadian Net-Zero Emissions Accountability Act, which became law on June 29, 2021. The law requires government to set emission reduction targets and enable plans to achieve them. Canada is currently aiming to reduce emissions by 40-55% below 2005 levels by 2030.
As governments set goals to reduce carbon emissions and investors focus more on sustainability, businesses are feeling the pinch and the need to step up their game in tracking emissions. However, traditional carbon reporting relies on manual data collection, spreadsheets, and external consultants which can be slow, expensive and subject to errors. For many SMEs, keeping track of their carbon footprint is challenging and takes up too much time.
See: Davos 2025 Themes and Takeaways for Fintech
SMEs account for 99.8% of Canadian businesses and were responsible for 41% of the country’s greenhouse gas emissions in 2020. However, according to a KPMG 2023 business survey while 78% of Canadian SMEs have policies to reduce emissions, the majority of them 70% report that they lack the time and resources to implement them effectively. Compliance costs and lack of expertise often prevents smaller firms from activating sustainable efforts. Automating carbon tracking can help companies overcome these barriers towards making real progress.
Sanders Lazier, CEO and Co-founder of Carbonhound:
"Sustainability reporting has become table-stakes for businesses that want to work in global supply chains and attract top-tier talent. We are excited to work with RBC to help enable Canadian businesses to compete more effectively and expand their margins through sustainability data."
How RBC and Carbonhound’s Partnership Works
The Royal Bank of Canada (RBC), one of Canada’s largest financial institutions, is partnering with Carbonhound a company that makes tracking carbon emissions easier by connecting directly to business data and providing real-time insights into emissions. It also helps businesses create reports that follow major sustainability rules, making it easier to stay compliant and be more transparent.
The partnership brings a set of solutions designed to:
- Track emissions automatically using real business data including Scope 1, 2, and 3 greenhouse gases
- Create carbon reports that meet sustainability reporting standards
- Offer practical steps to help businesses lower their emissions, such as insights to set realistic reduction targets and identify cost-saving strategies
- Ensure compliance with increasing sustainability regulations including the Greenhouse Gas Protocol and ISO 14064
Also worth noting, on February 1, 2025, Carbonhound announced a partnership with Manifest Climate, which uses AI to guide businesses through evolving regulatory landscapes to make climate reporting more accessible and actionable.
Impact on the Canadian Market
Canada’s financial rules are changing to push businesses toward sustainability. With the government and regulators focusing on ESG reporting, companies that don’t adapt could lose funding or face stricter rules.
See: Tech Leaders Launch Build Canada for Innovation Policy Reform
RBC has been a leader in sustainable finance, first pledging $100 billion by 2025 but after reaching that goal ahead of schedule the bank increased its commitment to $500 billion by 2025, showing continued dedication to help companies adopt more sustainable practices (learn about RBCs climate commitments).
The RBC-Carbonhound partnership helps all Canadian businesses especially SMEs, which often lack the resources for sustainability efforts and carbon reporting. As more businesses use these tools, Canada’s economy will be better prepared to compete in a world that values sustainability.
Conclusion
As Canada pushes toward its net-zero goals, partnerships like RBC and Carbonhound can help companies turn sustainability from a challenge into an opportunity and competitive advantage while staying compliant, attracting investment, and reducing their environmental impact.
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