At the same time, many banks became reluctant to make loans to one another because of uncertainties around counterparty risk and about their own future funding needs. The effect was to increase the cost and reduce the availability of credit, both in Canada and globally.
Solid and credible transition plans that lay out how financial institutions and corporates plan to achieve their climate ambitions give investors a better idea if a company or a project is worth investing in. The United Kingdom has been a pioneer when it comes to transition plans. As from next year, companies listed in the UK must put forward transition plans.