Senator Galvez has introduced a private-member’s bill that is designed to oblige financial entitles to consider climate commitments in decision-making.

Summary of Bill S-238:

Part 1 enacts the Climate-Aligned Finance Act, which, among other things, establishes the climate commitments and obligations of various entities in relation to these commitments. Part 2 establishes further obligations for entities — primarily financial entities — in relation to the climate commitments provided for under the Climate-Aligned Finance Act by
(a) setting baseline requirements for entities to achieve climate commitments;
(b) providing greater certainty and transparency regarding entities’ respect for their responsibilities relative to the global carbon budget;
(c) ensuring that supervisory and regulatory authorities develop appropriate oversight and capital adequacy requirements;
(d) requiring directors, officers and administrators to align entities with climate commitments;
(e) promoting timely and meaningful progress towards entities’ alignment with the stability of both the financial system and climate in relation to systemic risks posed by emissions intensive activities;
(f) ensuring climate expertise on certain boards and disclosing certain conflicts of interest; and
(g) requiring the development of action plans, targets and progress reports for entities in respect of climate commitments through reporting requirements.

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The Citizen’s Climate Lobby Canada has organized a petition to support this legislation that states:

Open Letter to the Climate Leaders in the Senate of Canada
re: Climate-Aligned Finance Act (CAFA) – Advancing Financial Alignment with Canada’s Climate Commitments

Dear Honourable Senators,

We, the undersigned residents of Canada, thank you for your service and for your dedication to the long-term prosperity and financial stability of our country. We respectfully ask for your careful consideration and timely advancement of Bill S-238, the Climate-Aligned Finance Act (CAFA), to the House of Commons.

As you know, climate risk is financial risk, and we need to address this. Climate change poses growing risks to our financial stability, public finances, and the well-being of all Canadians. Continued support for fossil fuels heightens these risks and undermines Canada’s commitments under our many national and international agreements and laws.

Bill S-238, which was developed through extensive consultation with national and international experts, provides a practical framework to:

• Mobilize finances toward projects that meaningfully reduce emissions;
• Mitigate systemic climate risks threatening our economy;
• Promote transparency and accountability, helping investors make informed decisions.

Passing CAFA would position Canada as a global leader in climate-aligned finance, embedding accountability into our financial system and strengthening long-term economic resilience. We stand ready to support your leadership as this bill moves forward.

Thank you for your service and dedication to all Canadians.

The petition is accessible here.