Climate rules for financial institutions

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.

Available on the Senate of Canada website at the following address: www.sencanada.ca/en

The government's summary, printed at the front of the bill as introduced.