Ground-breaking Climate-Aligned Finance Bill to be Studied by Senate Committee

June 8, 2023

Ottawa, June 8, 2023 – After over a year of waiting in the Senate, Bill S-243, the Climate-Aligned Finance Act (CAFA), has finally been referred for study to the Standing Senate Committee on Banking, Commerce and the Economy. Independent Senator Rosa Galvez, sponsor of the bill, made the following statements:

“The wildfires currently burning across Canada are a stark reminder that we have no time to waste in strengthening climate action. After more than a year of waiting, the Senate will finally take a hard look at how our money is fueling the climate crisis and how CAFA offers a path towards financial and climate stability. Climate change is a clear and present danger, putting Canadian lives and livelihoods at risk. Legislators must act urgently and proceed quickly to studying this crucial bill and moving it forward.”

“Canadian banks and pension funds are among the world's largest investors in fossil fuels, with over a hundred billion dollars of Canadian assets at risk. Our banks rank in the bottom third globally for financing clean energy but are amongst the top fossil fuel financiers. Without CAFA, Canada will continue to fall behind in the race to build a clean economy, with our banks and pension funds investing in the past instead of an inclusive economy that can work for all Canadians and future generations.”

“Bill S-243, was developed with dozens of international and national experts and seeks to implement science-based targets and hold financial institutions accountable to them, establishing climate as a superseding duty, and strengthening capital adequacy requirements, resulting in greater climate resilience across our whole financial ecosystem.”

“CAFA is the clarion call for the courageous legislation we need to confront climate risk in Canada's financial institutions. It aims to elevate Canada from international laggard to leader in climate-aligned finance, which is critical to safeguarding our economy and our future.”

“This is what world leading climate-aligned finance legislation looks like. It sets the high bar we need to clear if we are to face the existential threat of climate change in a rapidly closing window.”

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. Fifty-six leading academics have called for the bill to proceed to committee review in the Senate.

The bill’s movement in the Senate follows a packed room event for parliamentarians featuring the Honourable Catherine McKenna and experts in sustainable finance and the announcement of cross-party support from Liberal, Green, NDP and Bloc MPs, for Motion M-84 urging the government to use all legislative and regulatory tools at its disposal to align Canada’s financial system with the Paris Agreement, which is jointly seconded by over a dozen MPs.

About Rosa Galvez, Ph.D., P.Eng., FEC, FCSCE

Senator Rosa Galvez is an environmental engineer, a former professor at Laval University, an independent Senator for the province of Quebec, and President of the ParlAmericas’ Parliamentary Network on Climate Change. She introduced Bill S-243, the Climate-Aligned Finance Act, a piece of legislation to align the activities of federal financial institutions and federally-regulated entities with Canada’s climate commitments in March 2022. She is the recipient of the Top 25 Women of Influence Award 2023 and was the recipient of the 2021 Clean50 award for her parliamentary work on environmental policy.

For more information please contact:

Karine Péloffy | Parliamentary and Legal Affairs Advisor | Office of Senator Rosa Galvez

343-548-1495 | Karine.Peloffy@sen.parl.gc.ca

Stéphane Laviolette | Political Strategic Advisor and Office Manager | Office of Senator Rosa Galvez

613-996-2210 | Stephane.Laviolette@sen.parl.gc.ca

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