Enact Climate Aligned Finance Act
Petitioners ask the government to enact the Climate Aligned Finance Act to require federal financial institutions and Crown entities to align governance, capital rules, disclosures and products with Canada’s 2050 net‑zero goal. The government responds it will issue sustainable‑investment guidelines, require climate disclosures for federal institutions, and continue green‑bond issuance to support net‑zero 2050.
Why we would sign this petition
- It would require banks and Crown entities to factor climate into governance and capital, reducing systemic financial risks linked to climate change.
- Annual plans, targets and public reporting would increase transparency and hold institutions accountable for progress toward 2050 net‑zero.
- Aligning products and capital rules could mobilize private investment and give markets clearer signals for the low‑carbon transition.
Why we wouldn’t sign this petition
- New mandates could raise compliance costs and regulatory burden for institutions, potentially increasing costs for customers or slowing lending.
- Federal requirements may duplicate or conflict with provincial rules and private standards, creating complexity; voluntary approaches may be more flexible.
- Mandating capital charges or governance changes risks unintended effects on competitiveness or credit availability without clear, tested metrics.
The summary and both sets of reasons are AI-generated from the petition and given equal weight. Claims are the petitioners’ own; consult the official record for the full text.
Official petition
PETITION TO THE HOUSE OF COMMONS IN PARLIAMENT ASSEMBLED We, the undersigned residents of Canada, draw the attention of the House of Commons in Parliament Assembled to the following: Whereas: Our economic and financial systems depend on a stable climate and the Bank of Canada recognizes that climate change poses significant risks to the financial system and the economy; Continued financial support for emissions-intensive activities increases future climate-related risks to the stability of financial systems and the long- term interests of Canadians; There has been no significant legislative action on the matter in Canada despite international developments legislating the climate and finance nexus which risks leaving Canada behind; and Bill S-243 the Climate Aligned Finance Act was drafted based on consultation with national and international experts so as to enable Canada to leapfrog from laggard to leader on aligning financial flows with climate commitments. Therefore, we, the undersigned, Citizens and Residents of Canada, call upon the Government of Canada to enact the principal concepts of the Climate Aligned Finance Act which would: 1) Establish a duty for directors and officers of federal financial institutions to align with climate commitments; 2) Align purposes of crown corporations and departments, including market oversight by the Office of the Superintendent of Financial Institutions, with climate commitments; 3) Require the development of action plans, targets and progress reports on meeting climate commitments through annual reporting requirements; 4) Ensure climate expertise on certain boards of directors and avoid conflicts of interest; 5) Make capital adequacy requirements proportional to microprudential and macroprudential climate risks generated by financial institutions; 6) Require a government action plan to align all financial products with climate commitments; and 7) Mandate timely public review processes on implementation progress to ensure iterative learning.
Government response
Response by the Minister of Finance and National Revenue Signed by (Minister or Parliamentary Secretary): The Honourable François-Philippe Champagne, P.C., M.P. The Government of Canada thanks the petitioner for expressing their views about climate-aligned finance in Canada. Canada’s transition to net-zero emissions by 2050 will require substantial investment beyond the public sector. Private sector capital and expertise will be needed to meet Canada’s climate objectives and create a climate-resilient economy. Developing sustainable finance in Canada will promote long-term growth and stability of Canada’s financial system. It will also help mobilize private sector resources and investment to finance Canada’s transition to net-zero emissions by 2050. The government’s recent election platform reaffirmed its commitment to building a climate-resilient economy and providing the market with the certainty and clarity it relies on. The government’s platform included commitments to: Finalize and implement voluntary made-in-Canada sustainable investment guidelines. Require climate-related financial disclosures and the development of net-zero plans for federally regulated institutions. Issue green and transition bonds. Sustainable investment guidelines (also known as a taxonomy) are an important, voluntary tool for investors, lenders, and other stakeholders navigating the global race to net-zero by credibly identifying “green” and “transition” economic activities. These guidelines would help provide credibility, accountability, and transparency in the marketplace. These are essential conditions for investors and companies to fill the investment gap necessary to meet the climate challenge while seizing generational opportunities for clean prosperity. From generating clean energy to decarbonizing emissions-intensive heavy industries, these guidelines would identify job-creating activities in a way that is scientifically credible and aligned with limiting global temperature rise to 1.5°C above pre-industrial levels. Climate-related financial disclosures would help investors better understand how large businesses are thinking about and managing risks related to climate change, ensuring that capital allocation aligns with the realities of a net-zero economy. Climate disclosure requirements are in place for federal Crown corporations and federally regulated financial institutions. The federal government remains ready to work with provincial and territorial partners to ensure broad disclosure coverage across the Canadian economy. Since 2022, Canada has issued $13 billion in green bonds to help finance projects that reduce emissions, protect our environment, and foster more resilient communities in the face of climate change. The government is committed to regular green bond issuance. The government is considering how it will approach transition bonds, which could help unlock further capital to invest in Canada’s transition to net zero. The government will provide more information later for how it will proceed. Also, the Government of Canada is transitioning to net-zero emissions and climate-resilient operations, while also reducing environmental impacts beyond carbon, including reductions in waste and water use and improvements to biodiversity. The Greening Government Strategy is a Government of Canada Directive that specifies greening government commitments for government-owned buildings, government-owned fleet, government procurement, and climate resilience (adaptation). The Strategy was created in 2017 and updated in 2020 and 2024. The Strategy is consistent with the United Nations’ 2030 Agenda for Sustainable Development and the Federal Sustainable Development Strategy. Crown corporations are expected to align with the Strategy or adopt an equivalent set of commitments in each significant area of their operations, including the commitment to get to net-zero emissions by 2050 and to be climate-resilient.