Climate-Aligned Finance

The Climate-Aligned Finance Act (CAFA) was introduced in March 2022 and has since been endorsed by 120 organizations from coast to coast and MPs from four out of the five parties in the House of Commons.

As sponsor of Bill S-243, An Act to enact the Climate-Aligned Finance Act and to make related amendments to other Acts, Senator Galvez shares the following research resources to provide context for the public and parliamentarians and better inform its legislative process.

Official Documents

Text of Bill S-243
An Act to enact the Climate-Aligned Finance Act and to make related amendments to other Acts.

Detailed Explainer of Bill S-243
A detailed explainer, section by section, of Bill S-243.

CAFA Legislative Overview
Summary of the rationale and key features of the Climate-Aligned Finance Act. Updated May 2022 (Previous version).

Motion 84 by MP Turnbull calling on the government to use all legislative and regulatory tools at its disposal to align Canada's financial system with the Paris Agreement.


Articles and Interviews

CBC (May 27, 2024): This senator wants Canadian banks to fight climate change

Le Devoir (May 13, 2024): Les banques canadiennes s'illustrent par leur aide « démesurée » à l'industrie fossile

The Banker (February 23, 2024): How bank boards are exposed to fossil fuel influence (February 2, 2024): Climate-Aligned Finance Will Future-Proof Canada's Economy

The Energy Mix (January 23, 2024): Prepare for the Worst, Bank Regulator Says, But Not on Climate Risk

SooToday (December 18, 2023): Full disclosure: companies face emissions reporting mandates even as Canada lags

The Hill Times (December 11, 2023): Canada needs to up its game on climate finance

Radio-Canada (December 4, 2023): Finances et changements climatiques : le Canada "à la traîne"

ESG Investor (June 21, 2023): CAFA to Catapult Canada to Climate Leader

The Hill Times (June 12, 2023): Here come the climate-aligned finance firefighters

La Presse (June 7, 2023): Greenpeace réclame une réglementation

Green Central Banking (May 30, 2023): Canadian MPs back proposal to align finance with Paris goals

The Energy Mix (May 30, 2023): House of Commons Motion, Senate Bill Urge New Climate Rules for Financial Institutions

National Observer (May 30, 2023): Regulators urged to consider 'unrivalled' bank concentration over RBC's bid to buy HSBC Canada

The Globe and Mail (May 25, 2023): Senator on a mission to make finance industry prioritize climate objectives

Toronto Star (May 19, 2023): Federal lawmakers back call to force banks, insurers and pension funds to follow climate-friendly investment rules

L'Actualité (May 18, 2023): Climat: des députés de quatre partis veulent forcer la main des banques

Toronto Star (May 14, 2023): Canada’s financial sector needs to step up its climate change game. Here’s how my legislation would help​

The Hill Times (May 3, 2023): It's time to stop stalling and advance the Climate-Aligned Finance Act

Policy Options (April 21, 2023): The banking meltdown is an omen for an even bigger risk: climate chaos

iPolitics (April 6, 2023): Senate environment committee chair hopes her bill will make financial sector more climate-conscious

Toronto Star (March 28, 2023): Sun Life's fossil fuel investments could put customers' health at risk, new shareholder proposal claims

Le Devoir (March 9, 2023): Il faut une Caisse de dépôt à la hauteur de l'urgence environnementale

The Narwhal (March 10, 2023): 5 takeaways from the new climate rules for Canada's big banks

Corporate Knights (February 15, 2023): Canada falling behind other countries on ESG investing rules: Report

National Observer (February 14, 2023): Canada's financial sector urged to 'take off the blinders' and prioritize climate change

The Conversation (November 6, 2022): A Canadian senator aims to end the widespread financial backing of fossil fuels

National Observer (November 1, 2022): Do bank directors have a legal obligation to get real on climate?

The Hamilton Spectator (August 8, 2022): Sen. Rosa Galvez is crafting policy for transparency in financial sector

Canada Climate Law Initiative (June 9, 2022): Canada's financial sector could face climate trouble, unless we implement a policy solution

National Observer (May 6, 2022): 'Deep entanglement' between fossil fuel companies and pension funds cause for concern

What on Earth, CBC Radio One (May 1, 2022): Interview with Laura Lynch on the Climate-Aligned Finance Act (starts at 43:22)

La Presse (April 13, 2022): Les banques doivent passer de la parole aux actes

National Observer (April 6, 2022): Government risks disaster by barely mentioning financial sector in climate plan

National Observer (April 5, 2022): Canada is once again shown up on climate finance

Le Devoir (March 31, 2022): Les grandes banques canadiennes ont augmenté leur aide aux énergies fossiles de 70% en 2021

Green Central Banking (March 28, 2022): Canadian bill would require climate capital requirements

The Energy Mix (March 25, 2022): New Senate Bill Targets Financial Institutions that ‘Fuel Climate Risk’

Le Devoir (March 25, 2022): Dépôt d’un projet de loi pour aligner la finance sur les engagements climatiques du Canada

Corporate Knights (March 24, 2022​): ‘Any delay means risk’: Senator looks to speed up banks’ net-zero journey


Op-ed in iPolitics (April 12, 2024): As a bold global movement, climate litigation demands action to future-proof our financial system

Op-ed in iPolitics (July 19, 2023): The unintended consequences of RBC's takeover of HSBC: A climate perspective

Op-ed in Research Money (July 5, 2023): Investing in a climate-resilient future: The economic case for climate-aligned finance

Op-ed in iPolitics (March 31, 2022): Government must own its role in an orderly climate transition

Op-ed in Le Soleil (March 26, 2022): Pour un secteur financier aligné sur le climat

Op-ed in the Hill Times (February 16, 2022): Aligning finances to the new climate reality: fix finance, fix the climate

Op-ed in iPolitics (June 30, 2021): Ready, set, go net zero! Now begins the race of our lives

Press Releases

New Report: Aligning Canadian Finance with Climate Commitments, Canada Lagging Behind its Peers in Terms of Sustainable Finance Legislation (October 31, 2023)

Ground-Breaking Climate-Aligned Finance Bill to Be Studied by Senate Committee (June 8, 2023)

Parliamentarians Call on Government to Act on Climate-Aligned Finance (May 17, 2023)

Official Response from Senator Rosa Galvez to Report of the Commissioner of the Environment and Sustainable Development on OSFI's Supervision of Climate-Related Financial Risks (April 20, 2023)

Bill S-243, the Climate-Aligned Finance Act, is a Year Old and Has Never Been More Necessary (March 24, 2023)

Official Response to OSFI B-15 Guideline on Climate Risk Management from Senator Rosa Galvez (March 7, 2023)

Official Response to the Principles for Responsible Investment’s Legal Framework for Impact for Canada from Senator Rosa Galvez (February 13, 2023)

Independent Senator Rosa Galvez introduces bill to align Canadian financial sector with climate commitments (March 24, 2022)

Press Conference

Parliamentarians Call for Climate-Aligned Financial System (May 18, 2023)


Briefings and Supporting Documents

White Paper: Aligning Canadian Finance with Climate Commitments
Comprehensive overview of the intersection between climate and finance in Canada and international best practices along with a set of recommendations for aligning Canada's financial sector with climate commitments.

What We Heard: Consultations on Aligning Canadian Finance with Climate Commitments
Synthesis of the expert feedback provided by over 40 experts during several consultation sessions held between December 2021 and January 2022.

Organizations List: Who does CAFA apply to?
Table of organizations covered by CAFA with examples for each category.

CAFA Overview Presentation
A presentation explaining the rationale behind and key features of the Climate-Aligned Finance Act.



Rosa Galvez: CAFA Second Reading Speech (April 7, 2022)

Julie Miville-Dechêne: CAFA Second Reading Speech (May 5, 2022)

Lucie Moncion: CAFA Second Reading Speech (May 12, 2022)

Marilou McPhedran: CAFA Second Reading Speech (May 4, 2023)


Other Links

Submission on OSFI's draft methodology for a Standardized Climate Scenario Exercise 

Information about the bill on LegisInfo

Press Release: Introduction of CAFA



This project has been a collaboration with the following groups:

John Molson School of BusinessSoftware Systems (BCompSc) - SUSPENDED ADMISSIONS
The Concordia Sustainability Ecosystem

Trottier Family Foundation
The Trottier Family Foundation

And with special thanks to Karine Péloffy, Nick Zrinyi, Stéphane Laviolette, and Jérôme Lussier


The contents of these documents are for information purposes only. Nothing in these documents should be construed as legal or professional advice and you may not rely on the contents of these documents as such.