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441-01566 (Environment)

Paper petition

Original language of petition: English

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 financial systems and the longterm 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, An Act to enact 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.

Response by the Deputy Prime Minister and Minister of Finance

Signed by (Minister or Parliamentary Secretary): The Honourable Chrystia Freeland

The Government of Canada thanks the petitioners for expressing their views about climate-aligned finance in Canada.

Canada’s transition to a low-carbon economy and 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 the long-term growth and stability of Canada’s financial system. It will also create new opportunities for Canadian businesses and investors.

In May 2021, the Government of Canada launched the Sustainable Finance Action Council (SFAC) to help lead the Canadian financial sector towards integrating sustainable finance into standard industry practice. The SFAC is chaired by Kathy Bardswick and comprises 25 Canadian deposit-taking institutions, insurance companies and pensions funds, with combined assets of over $10 trillion.

The SFAC’s Terms of Reference call on it to provide financial sector input to the Government of Canada on the development of foundational market infrastructure, including enhancing climate disclosure, defining green and transition investment, and improving climate data and analytics. More recently, in Budget 2022, the Government of Canada asked the SFAC to develop and report on strategies for aligning private sector capital with the net-zero transition, with support from the Canadian Climate Institute and in collaboration with the Net-Zero Advisory Body.

The council’s early emphasis has been on enhancing climate-related financial disclosures in Canada’s private sector. The SFAC has also worked on taxonomy, and, late in 2022, submitted the Taxonomy Roadmap Report to the Government of Canada, which sets out its advice on the design, governance, and implementation of a Canadian green and transition finance taxonomy. The Government of Canada is studying the Report’s advice, and there will be continued collaboration with the SFAC and other financial sector leaders on taxonomy.

The Government of Canada is making important progress in meeting its Budget 2022 commitment to move towards mandatory reporting of climate-related financial risks across a broad spectrum of the Canadian economy, based on the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.

Presented to the House of Commons
Daniel Blaikie (Elmwood—Transcona)
June 16, 2023 (Petition No. 441-01566)
Government response tabled
August 16, 2023
Photo - Daniel Blaikie
Elmwood—Transcona
New Democratic Party Caucus
Manitoba

Only validated signatures are counted towards the total number of signatures.