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Climate-Aligned Finance

As sponsor of Bill S-243, An Act to enact the Climate-Aligned Finance Act (CAFA) 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.

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


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.


Articles and Interviews

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

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

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


Other Links

Information about the bill on LegisInfo

Press Release: Introduction of CAFA



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)

Endorsements & Quotes

“We’ve seen a major ramping up of net-zero commitments from the public and private sector, but we must face the elephant in the room: our financial system continues to fund activities that fuel climate risk. Canadians are asking for legislative solutions that will help accelerate the transition and achieve our targets. The only scenario in which our financial sector will thrive and prosper for generations to come is the one where we pursue a coherent and orderly transition.”
– The Honourable Senator Rosa Galvez, Ph.D., P.Eng., FEC, FCSCE
“Investors with over $130 trillion under management and businesses with over $5 trillion in sales (and counting) have so far committed to a net-zero emission target in line with a 1.5-degree future. The scale of the challenge requires a whole-of-economy approach. Government has a critical role to play by providing the right incentives. Senator Galvez’s proposed bill would help level the playing field and provide the right incentives for the financial sector to facilitate a pathway for those businesses and investors to achieve their net zero commitments. The window is closing fast. The time to act is now to set Canada on a prosperous and competitive path to a low-carbon future.”
– Professor Amr Addas, Strategic Advisor for Sustainability, Concordia University
“There is already plenty of work being done to address the risk of climate change to an individual company or a bank, but what is valuable about the Climate-Aligned Finance Act is that it addresses the systemic risk that these institutions impose on the real economy by financing fossil fuel expansion. Banks aren’t at risk of going bankrupt from these activities, but their collective risky investments ‒ likely to result in stranded assets and stranded workers ‒ pose a risk to the stability of Canada's economy as a whole.”
– Dr. Ellen Quigley, Senior Research Associate (Climate Risk & Sustainable Finance), University of Cambridge
“The Climate-Aligned Finance Act puts into place the clarity and predictability needed to enable Canada's financial sector to compete globally on a level playing field. It puts Canadian financial actors and regulators in a position to make substantial contributions to keeping Canada's emissions to safe levels. And, most importantly, it provides Canadians with the visibility they need to invest their savings with a safe climate future in mind.”
– Celine Bak, President and Founder, Analytica Advisors
“In order to help combat climate change, Canada must change the way the financial system operates to encourage the allocation of capital, both invested and loaned, to more environmentally and socially sustainable activities. The measures proposed in the proposed Climate-Aligned Finance Act will help make the financial sector and the Canadian economy more resilient to the risks associated with the climate crisis and will allow Canadian savers to contribute to the solutions and accelerate the transition to a low-carbon economy.”
– François Meloche, Head of Corporate Engagement, Æquo
“Sustainable finance and investing are a dynamic fast-moving field. The Climate-Aligned Finance Act goes a long way towards aligning Canadian sustainable finance with emerging international developments such as the new European Union green taxonomy. Pension organizations should already be clarifying the scope of fiduciary duty in the context of climate change and the Act reinforces and codifies this. The clearer these responsibilities, the better.”
– Keith Ambachtsheer, Director Emeritus, International Centre for Pension Management


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 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.