Canada

Canada's proposed sustainable finance taxonomy includes a controversial 'abatement measures' category that allows continued investment in fossil fuel projects with abatement technologies. The taxonomy aims to define green and transition activities, with implications for ESG reporting and investment classification.

Canada's proposed Lawful Access Act would require U.S. tech companies to store user metadata for up to a year, create encryption backdoors, and modify systems for surveillance. U.S. Senator Wyden urges opposition, citing national security risks and a statutory vacuum. The bill has passed Canada's House of Commons and awaits Senate approval.

New Brunswick, Canada has enacted two employment law reforms effective June 12, 2026: the Pay Transparency Act requiring salary ranges in job postings and prohibiting compensation history inquiries, and amendments to the Employment Standards Act creating a new unpaid leave of up to 27 weeks for serious illness or injury. Employers must update job postings, compensation policies, and leave procedures.

Canada is developing a taxonomy for sustainable finance, including a new 'abatement measures' category and environmental/social safeguards. This framework will define green and transition activities, impacting ESG reporting and compliance for companies operating in Canada.

Canada's Business Future Pathways released a draft methodology for a Sustainable Finance Taxonomy with a novel 'Abatement' category for oil and gas production decarbonization. Public comment is open until August 13, 2026, with sector guidelines expected by end of 2027.

Ontario has eliminated the separate server minimum wage, with a general minimum wage of $17.60/hour as of October 2025. Proposed Bill 105 would prohibit employers from charging employees for mandatory uniforms. Employers must also comply with tip pooling rules and the three-hour rule for reporting pay.

Canada is modernizing its payment infrastructure with the Real-Time Rail system, requiring fintechs to comply with new regulatory standards and technical requirements. Fintechs must adapt to changes in payment processing, data security, and interoperability to remain compliant.

Bill C-35 proposes a ban on forced labour in Canadian supply chains, requiring health and safety leaders to extend due diligence beyond their own worksites. Companies must implement enhanced monitoring, reporting, and risk management across their entire supply chain.

Prince Edward Island's new Employment Standards Act (Bill 76) introduces major changes including reduced standard work hours, new scheduling and rest requirements, expanded sick leave, improved vacation, and revised termination rules. Employers must update policies and practices to comply by the effective date.

Québec has approved a new regulation on the prevention of sexual violence in the workplace, expanding employer duties. It requires written information for workers, mandatory training every three years, and a formal complaint process. Most provisions take effect May 27, 2027.

Québec has approved a new Regulation under the Act respecting occupational health and safety requiring employers to implement measures to prevent sexual violence, including mandatory training every three years and formal complaint procedures. Most obligations take effect May 27, 2027, with training requirements effective in 2028.

Canada has proposed new legislation to strengthen its ban on imports made with forced labor, including a high-risk goods list, enhanced supply chain tracing, and a deeming provision. Companies importing into Canada must prepare for stricter compliance obligations.

Manitoba, Canada has enacted two new employment laws: Bill 10 provides up to 16 weeks of unpaid attachment leave for adoption or surrogacy (effective June 1, 2026), and Bill 11 restricts employer-required sick notes and requires reimbursement (effective November 28, 2026). Employers must update policies to comply.

New equal pay provisions under the Canada Labour Code will come into force on October 20, 2026, requiring federally regulated employers to ensure equal pay for substantially similar work regardless of employment status. Employers must conduct proactive pay audits and adjust compensation systems.

OSFI released guidelines requiring federally regulated financial institutions to disclose climate-related risks and opportunities, including financed emissions (Scope 3), aligned with TCFD. Phased implementation starts with larger institutions.

Canada's Liberal government has proposed a ban on cryptocurrency ATMs to combat fraud and money laundering, following a FINTRAC analysis identifying them as a primary tool for scammers. The ban would eliminate all crypto ATMs in Canada, and lawmakers are also considering banning crypto for electoral donations.

Canada's Bill C-25, the Strong and Free Elections Act, which would ban cryptocurrency donations to federal political campaigns, has passed second reading with cross-party support and moved to committee review. Recipients must return illegal crypto contributions or remit them to the Receiver General within 30 days.

Canada's new Value-Referenced Crypto Assets (VCRA) regulations require crypto exchanges to delist non-compliant stablecoins by December 31, 2024. Circle's USDC has become the first stablecoin to achieve compliance with these rules, setting a precedent for the market. This regulatory change creates a compliance deadline for all stablecoin issuers and crypto exchanges operating in Canada.

Canada has amended Bill C-59 to revise greenwashing rules, addressing misleading environmental claims in sustainability disclosures. This regulatory change aims to enhance transparency and accountability in environmental reporting for Canadian companies, particularly in the energy sector, aligning with global ESG trends.

Canada has established leadership for its new sustainable finance taxonomy council, which will develop a classification system for sustainable economic activities to guide investment and combat greenwashing. This represents a significant step in formalizing ESG regulatory frameworks in Canada, affecting financial institutions and companies seeking sustainable investment.