Bill Detail
An Act to enact the Climate-Aligned Finance Act and to make related amendments to other Acts
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;
This bill, the Climate-Aligned Finance Act, aims to make financial entities in Canada more accountable for meeting climate commitments. It sets baseline requirements, demands greater transparency about their role in the global carbon budget, and ensures regulators develop oversight and capital requirements. The Act requires company leaders to align their organizations with climate goals, promote progress towards financial and climate stability, and report on their actions and targets. This affects financial institutions and their leadership, aiming to mitigate systemic risks from emissions-intensive activities.