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FederalDid not become law (session ended)44th Parliament, 1st Session

Bill S-243 explained in plain English

An Act to enact the Climate-Aligned Finance Act and to make related amendments to other Acts

Federal Parliament bill summary, status, timeline, sponsor, votes, and official sources.

At a glance

Jurisdiction
Federal Parliament
Legislature / Parliament
Parliament of Canada
Session
44th Parliament, 1st Session
Bill number
Bill S-243
Full title
An Act to enact the Climate-Aligned Finance Act and to make related amendments to other Acts
Current status
Did not become law (session ended)
Latest event
At consideration in committee in the Senate
Last updated
Jun 8, 2023

Official Parliament of Canada snapshot for 44th Parliament, 1st Session. MP vote breakdowns appear when the House of Commons publishes a recorded division export for that bill. Senate and House stage details include official debate/sitting links when LEGISinfo publishes them.

Chamber
Parliament of Canada
Current Stage
At consideration in committee in the Senate
Latest Activity
Jun 8, 2023
Plain-language explanation
In plain English (our explanation)

Our plain-language take, written for civic education.

Source: By PoliticalData.ca

AI-assisted, reviewed before publishing
Short Version

The Climate-Aligned Finance Act mandates financial institutions to align operations with Canada's climate goals through reporting requirements, investment restrictions, and governance reforms.

What It Means

The Climate-Aligned Finance Act requires financial institutions and certain entities to align their operations with Canada's climate goals. Key provisions include: (1) Defining 'climate-aligned' as meeting emissions reduction targets and avoiding high-carbon activities; (2) Mandating reporting on climate risks and mitigation strategies; (3) Restricting investments in speculative technologies and high-emission projects; (4) Establishing a Superintendent to oversee compliance and set standards; (5) Requiring boards of directors to include climate expertise; (6) Amending the Financial Administration Act to integrate climate commitments into financial regulations; (7) Creating an independent review process every three years to assess progress. The Act comes into force on a date to be proclaimed after provincial consent for Part 4.

What This Bill Does
  • Requires financial institutions to report on climate risks and mitigation strategies
  • Limits investments in speculative technologies and high-emission projects
  • Establishes a Superintendent to oversee compliance and set climate standards
  • Amends the Financial Administration Act to integrate climate commitments into financial regulations
  • Mandates board-level climate expertise for regulated entities
  • Creates an independent review process every three years to assess progress
Who Is Affected
  • Financial institutions
  • Investment funds
  • Insurance companies
  • Superintendent of Financial Institutions
  • Board members of regulated entities
Uncertainties Or Limits
  • The exact date of coming into force is not specified in the text
  • The scope of 'speculative technologies' is not defined in the bill
  • The process for provincial consent for Part 4 is not detailed
Laws Or Regulations Affected
Financial Administration Act
Amended to integrate climate commitments into financial regulations

Financial institutions must now consider climate risks and emissions reduction targets in their operations and reporting.

Canada Pension Plan Investment Board Act
Amended to align with climate goals

The Canada Pension Plan Investment Board must ensure its investments align with Canada's climate commitments.

Canadian Net-Zero Emissions Accountability Act
Integrated into the financial sector framework

Climate targets from the Net-Zero Emissions Accountability Act now apply to financial institutions' investment decisions.

Generated using AI from official bill text. Not legal advice. It is written by PoliticalData.ca for civic education, automatically checked and spot-reviewed before publishing.

Official text

Parliamentary Process

Step 1
First reading
Mar 24, 2022
Completed

Bill S-243, an Act to enact the Climate-Aligned Finance Act, completed its first reading in the Senate on March 24, 2022, and has since undergone second reading and committee consideration.

Introduction and first reading, Mar 24, 2022
End of stage activity, Mar 24, 2022
Chamber sittings
Introduction and first reading - Mar 24, 2022

Bill S-243, concerning climate-aligned finance, was introduced and read for the first time in the Senate, marking the beginning of its legislative journey.

Step 2
Second reading
Jun 8, 2023
Completed

The Senate completed the second reading of Bill S-243 on April 7, 2022, and referred it to committee for further review on June 8, 2023.

Second reading, Jun 8, 2023
Referral to committee, Jun 8, 2023
End of stage activity, Jun 8, 2023
Chamber sittings
Debate at second reading - Apr 7, 2022

During a Senate sitting on April 7, 2022, Bill S-243, concerning climate-aligned finance, was introduced at second reading, but the debate was adjourned, with the sitting proceeding to address numerous other items.

During the Senate's second reading debate on Bill S-243, the sponsor explained the bill's purpose to align Canada's financial sector with climate commitments through measures like mandatory reporting, target setting, and risk assessment, aiming to foster transparency and accountability in the transition to a low-carbon economy.

Debate at second reading - May 5, 2022

On May 5, 2022, the Senate held a tribute to retiring Senator Terry M. Mercer, addressed questions on various government matters, and adopted a motion to extend hybrid sittings.

Debate at second reading - May 12, 2022

On May 12, 2022, the Senate debated Bill S-243 at second reading, with Senator Lucie Moncion discussing its proposals for managing climate-related financial risks and the need for a committee study on the economic impacts of the transition.

Debate at second reading - Mar 28, 2023

The Senate sat on March 28, 2023, beginning with tributes to former Senator Landon Pearson, followed by routine proceedings, question period on various government matters, and extensive debate on multiple bills and motions, including those concerning climate change, intimate partner violence, and medical assistance in dying.

Debate at second reading - May 4, 2023

The Senate debate records detail procedural discussions on legislative bills, environmental justice, health research, and constitutional matters, with motions to extend committee reports and adjourn the Senate, but no final outcomes are specified.

Debate at second reading - Jun 8, 2023

The Senate debated multiple bills during the June 8, 2023 sitting, including amendments to the Criminal Code on medical assistance in dying, repeal of corporal punishment provisions, tax deductions for tradespersons, and a private bill on corporate amalgamation.

The Senate debate transcript outlines discussions on multiple bills, including referrals to committees, debates on legal provisions, and motions, with some details remaining unspecified in the official text.

Step 3
Consideration in committee
May 9, 2024
Not completed

Bill S-243 is undergoing committee consideration in the Senate as of May 9, 2024, following its referral to committee on June 8, 2023.

Step 4
Report stage
Not reached yet
Not reached

Bill S-243, concerning climate-aligned finance, has progressed to the Senate Report stage, though this specific stage has not yet occurred, following committee consideration and second reading.

Step 5
Third reading
Not reached yet
Not reached

Bill S-243 has been referred to a Senate committee for consideration and has not yet reached third reading.

Step 1
First reading
Not reached yet
Not reached

The House of Commons First reading stage for Bill S-243 has not yet been reached, with the bill currently under consideration in a Senate committee.

Step 2
Second reading
Not reached yet
Not reached

Bill S-243 is currently under consideration in a Senate committee, after having reached Second Reading in the House of Commons but with that stage not yet having been reached.

Step 3
Consideration in committee
Not reached yet
Not reached

Bill S-243 has reached the 'Consideration in committee' stage in the House of Commons, but this stage has not yet occurred, while its Senate proceedings are detailed.

Step 4
Report stage
Not reached yet
Not reached

Bill S-243 has not yet reached the Report stage in the House of Commons and is currently being considered by a committee in the Senate.

Step 5
Third reading
Not reached yet
Not reached

Bill S-243 has not yet reached the third reading stage in the House of Commons and is currently under Senate committee consideration, with key dates and speeches from its Senate progression noted.

Debate and sitting links point to official parliamentary sources when LEGISinfo publishes them. Any plain-language discussion summaries should be generated from those official texts and reviewed before public display.

Vote Summary

No published recorded division

This bill is still active. We only show vote counts after the legislature publishes a recorded division.

Sponsor
Rosa Galvez
Senator | Independent Senators Group (ISG) | Quebec
Jurisdiction
Federal Parliament

No published representative vote breakdown

This bill is still moving through the process. When a recorded division is published, representative positions can be listed here.

Official sources

Status, sponsor, votes, and timeline on this page are drawn from these official legislative sources and public records. Each summary above is attributed to its own source.

How this data is sourced