SoVote

Bill S-243

44th Parl. 1st Sess.

May 04, 2023

Bill S-243, also known as the Climate-Aligned Finance Act, establishes climate commitments and obligations for various entities, primarily financial entities, in relation to them. The legislation recognizes the risk of climate change and aims to align financial flows with climate commitments. It also requires certain federally regulated entities to mitigate and adapt to the impacts of climate change and supports investment in energy efficiency, clean energy, and clean technologies while phasing out investments in emissions-intensive activities. The Act includes reporting requirements, capital adequacy guidelines, conflict of interest rules, and enforcement measures. Related amendments to other Acts are also included.

uming insurer, a life insurance company or a fraternal benefit society within the meaning of the Insurance Companies Act; (e) a cooperative credit association within the meaning of the Cooperative Credit Associations Act; (f) an association that is regulated by the Cooperative Associations Act; (g) a public pension fund that is subject to federal regulation under the Pension Benefits Standards Act, 1985; (h) an investment fund that is a reporting issuer within the meaning of securities legislation; (i) a pension fund subject to federal regulation under the Pension Benefits Standards Act, 1985; and (j) any other regulated entity that is specified by regulation of the Governor in Council. (institution financière fédérale) financial institution means (a) a federal financial institution; (b) a cooperative credit society or credit union that is regulated under the laws of a province; (c) a financial institu

The Climate-Aligned Finance Act risks imposing undue burdens and restrictions on financial institutions, ultimately harming economic growth and stability. The obligations and reporting requirements will be costly and difficult to implement, potentially leading to reduced lending and investment. Furthermore, forcing a shift away from emissions-intensive activities could lead to job losses and could harm industries that are critical to Canada's economy. The government should focus on incentivizing and supporting the transition to clean energy, rather than imposing mandates that could harm the economy and financial system.